• NuScale Power signed a memorandum of understanding with the Tennessee Valley Authority for the potential deployment of up to 6 GW of small modular reactors across seven U.S. states.
• The TVA partnership represents the largest planned SMR rollout in U.S. history and advances NuScale's push toward commercial scale nuclear projects.
• The agreement is non binding and comes as NuScale works through execution risks, delayed international projects, and a need for substantial capital and manufacturing capacity.

For investors watching NYSE:SMR, the TVA announcement lands after a mixed share price record. The stock closed at $17.53, with a 7.5% gain year to date but a 32.2% decline over the past year and a 10.0% decline over the past month. Over a longer horizon, NuScale shows gains across 3 year and 5 year periods, although the path has been volatile.

This new partnership sets up a clear test of whether NuScale can turn technical progress into repeatable, commercial projects at scale. The lack of binding contracts and ongoing execution challenges keep risk elevated, so the next updates on project selection, timelines, and funding will be important markers for anyone tracking the stock.

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The TVA memorandum of understanding is a big swing for NuScale because it links its NRC-approved small modular reactor design to a potential multi gigawatt rollout with a large, established utility. For you as an investor, this puts NuScale in the same conversation as peers like Oklo and traditional nuclear players such as EDF or Korea Hydro & Nuclear Power, but with the important caveat that this is still a non binding framework rather than a firm order book.

How this TVA news fits into the NuScale Power narrative

The deal lines up closely with the existing NuScale story, which centers on converting its ENTRA1 partnership and early projects like RoPower in Romania into repeatable fleets of reactors. Analysts already frame NuScale as a company with long term potential tied to government and data center demand, and this TVA framework reinforces that view while keeping the core question intact: can the company turn interest and MOUs into contracted projects that actually run and generate cash?

Risks and rewards investors should keep in mind

• 🎁 Largest planned SMR rollout in U.S. history with TVA could, if executed, support multi year volume for NuScale modules.
• 🎁 Existing partnerships with ENTRA1 and international prospects like RoPower suggest multiple paths to commercial scale rather than a single project bet.
• ⚠️ The TVA agreement is non binding, and NuScale still has no finalized first sale, so commercialization risk remains high.
• ⚠️ Significant capital needs, potential dilution and prior project cancellations highlight that execution setbacks can directly impact shareholder outcomes.

What to watch next

From here, the key things to watch are whether TVA progresses from framework to site specific commitments, how NuScale funds manufacturing build out, and whether any of the Romanian or ENTRA1 linked projects cross a final investment decision. If you want a broader sense of how other investors are thinking about these milestones and risks, check out the community narratives on NuScale Power and see how your view lines up.

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.