• NuScale Power recently gained attention after a Bank of America analyst upgraded its rating, while broader nuclear enthusiasm intensified around AI-related energy needs and NuScale’s NRC-approved small modular reactor designs.
• An interesting angle is that NuScale benefited from sector momentum sparked by Meta’s nuclear power commitments, despite not being a direct participant in those deals.
• Now we’ll explore how this renewed focus on AI-driven nuclear demand, alongside the analyst upgrade, may affect NuScale’s investment narrative.

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NuScale Power Investment Narrative Recap

To own NuScale today, you need to believe that its NRC‑approved small modular reactor designs can translate into real projects and long‑term contracts, despite ongoing losses and early‑stage commercialization. The Bank of America upgrade and AI‑driven nuclear enthusiasm highlight that potential, but they do not change the core near‑term catalyst of securing a first SMR sale or the biggest risk around delayed customer commitments and continued cash burn.

The most relevant update here is Bank of America’s rating change to neutral, with a new price target tied to NuScale’s design approvals and its agreement with the Tennessee Valley Authority. This improves sentiment around NuScale’s risk profile, but the key catalyst still sits with converting technical and regulatory progress into firm customer orders, particularly as AI data center power needs keep nuclear and SMRs in the spotlight.

Yet behind the optimism around AI and nuclear, investors should also be aware of the risk that NuScale remains years from commercialization and still needs to...

NuScale Power's narrative projects $402.3 million revenue and $42.2 million earnings by 2028.

Uncover how NuScale Power's forecasts yield a $35.50 fair value, a 73% upside to its current price.

Exploring Other Perspectives

Fifteen fair value estimates from the Simply Wall St Community span roughly US$1 to US$52 per share, showing how far apart individual views can be. You can weigh this dispersion against the central catalyst of NuScale needing its first commercial SMR sale, which could materially influence how the market eventually judges its long term potential.

Explore 15 other fair value estimates on NuScale Power - why the stock might be worth less than half 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.