Key Takeaways
- NuScale Power (SMR) stock rallied after Amazon announced agreements to deploy SMR technology for powering artificial intelligence data centers
- In February, Romania greenlit NuScale’s 462-megawatt facility through a Final Investment Decision, transitioning the project from planning into execution phase
- The Romanian project’s financing package — projected at up to $7 billion — is anticipated to require approximately six months from mid-February, suggesting a possible reveal by late August
- Bank of America resumed coverage with a Neutral stance and $12 target, recognizing NuScale’s regulatory advantage while noting sluggish contract conversion rates
- NuScale remains the sole company holding U.S. NRC Standard Design Approval for small modular reactor technology, providing a competitive credibility advantage
NuScale Power (SMR) is currently trading near $11.40, reflecting a roughly 27% decline year-to-date, though recent spring developments have market participants closely monitoring upcoming summer milestones.
NuScale Power Corporation, SMR
Shares experienced an uptick last week following Amazon’s announcement of agreements to utilize small modular reactor infrastructure for its artificial intelligence data center operations. NuScale, being among the most recognized players in the SMR sector, benefited from the resulting market enthusiasm.
Trading volume for SMR reached 30.2 million shares on the day Amazon revealed the partnership, compared to its typical 28.9 million average — demonstrating how rapidly investor perception can evolve in this emerging sector.
However, the potentially more significant catalyst may be developing in Eastern Europe.
During February, Romania’s energy minister revealed a Final Investment Decision regarding NuScale’s 462-megawatt SMR facility in Doicești. This initiative aims to substitute 600 MW of coal-fired generation with sustainable, reliable power utilizing six NuScale reactor modules.
This approval advanced the initiative from assessment into active implementation. The remaining requirement centers on securing financing.
Romanian Prime Minister Ilie Bolojan estimated construction expenses at up to $7 billion. He expressed caution regarding the timeline, noting the funding structure remained unfinalized and that “the complexity of such projects and the technology being in early days” indicated the capital wouldn’t materialize instantly.
Yet Romania’s energy minister provided more concrete guidance: the financing phase would span roughly six months beginning mid-February. Based on that timeline, a potential announcement could emerge around mid-to-late August.
Bank of America Resumes Coverage With Neutral Stance
Bank of America reestablished coverage of NuScale on May 22, assigning a Neutral rating alongside a $12 price objective.
The analyst recognized NuScale’s competitive position — it stands as the exclusive SMR developer possessing U.S. Nuclear Regulatory Commission Standard Design Approval, establishing a “clear credibility lead versus peers.”
However, BofA highlighted several genuine challenges. Revenue generation remains dependent on service contracts rather than reactor construction activities. Initial reactor operations aren’t projected until the early 2030s. Additionally, the rate at which signed memoranda convert into firm contracts has lagged expectations.
This final observation warrants attention. NuScale maintains a substantial deal pipeline, featuring a 6-gigawatt arrangement with ENTRA1 and collaboration with the Tennessee Valley Authority for eastern U.S. deployment. The conversion rate of these agreements into binding commitments will prove significant.
The Small Modular Reactor Value Proposition
NuScale’s core argument is compelling: SMRs offer faster construction timelines and reduced costs compared to traditional nuclear facilities, with modular architecture enabling incremental capacity expansion.
In 2023, NuScale achieved a milestone as the first U.S. entity to obtain NRC Standard Design Approval for SMR technology. This represents a substantial regulatory achievement that precedes any competing developer.
The 52-week trading range for SMR extends between $8.85 and $57.42 — a volatility range illustrating the dramatic sentiment fluctuations surrounding this equity over the past year.
The upcoming months may prove decisive. Should Romania’s financing materialize according to the projected schedule, NuScale would secure one of its most substantial pipeline projects with both regulatory clearance and capital backing in place.
