• NuScale Power Corporation recently announced that it partnered with Oak Ridge National Laboratory to apply an AI-enabled nuclear design framework to a 12-module NuScale Power Module configuration, funded through the U.S. Department of Energy’s GAIN initiative to explore more efficient, lower-cost fuel management across multiple reactors at a single site.
• This collaboration highlights how NuScale’s multi-module architecture and shared fuel pool could unlock fuel-cost efficiencies that aren’t available to traditional single-reactor nuclear plants, potentially sharpening the economic case for its small modular reactors.
• We’ll now examine how this AI-driven fuel optimization effort with ORNL could influence NuScale’s investment narrative and perceived path to commercialization.

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NuScale Power Investment Narrative Recap

To own NuScale, you have to believe small modular reactors can move from promising designs to real plants with long term offtake agreements and manageable capital needs. In the near term, the key catalyst and risk both sit with project execution and funding, particularly at Doicesti and ENTRA1 linked deployments. The new AI fuel optimization work with ORNL is directionally positive for costs, but it does not materially change those core near term uncertainties.

The most directly relevant prior development is NuScale’s NRC approval for its uprated 77 MWe module, which underpins the 12 unit configuration being studied with ORNL. That approval, combined with DOE’s GAIN backing for the AI fuel study, reinforces NuScale’s regulatory and technical position as it seeks to convert interest at projects like Romania and TVA or ENTRA1 sites into firm contracts that can eventually support revenue and cash flow.

Yet investors should also weigh how project delays, especially at Doicesti, could interact with NuScale’s cash needs and ongoing equity issuance...

NuScale Power's narrative projects $402.3 million revenue and $42.2 million earnings by 2028. This requires 121.5% yearly revenue growth and a $178.8 million earnings increase from -$136.6 million today.

Uncover how NuScale Power's forecasts yield a $33.96 fair value, a 137% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were assuming about US$941.3 million of revenue and US$111.3 million of earnings by 2028, which is a far more upbeat view than the more cautious focus on Doicesti delays and ENTRA1 execution risk. This AI fuel optimization work with ORNL could support either story, and it will be up to you to decide which narrative still fits best as new information emerges.

Explore 15 other fair value estimates on NuScale Power - why the stock might be worth over 4x more than the current price!

Build Your Own NuScale Power Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your NuScale Power research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free NuScale Power research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NuScale Power's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.