Is NuScale Power (SMR) Cheap As AI Data Center Demand Revives Its Nuclear Story?
NuScale Power (SMR) is back in focus as AI data centers search for reliable power sources. Investors are weighing its certified small modular reactor design, early stage global projects, and training focused SMR Energy Exploration Centers.
Recent headlines around NuScale Power’s AI data center potential arrive after a tough stretch, with the share price down 45.49% year to date and the 1 year total shareholder return falling 78.65%. At the same time, the 3 year total shareholder return remains very strong, which suggests that recent enthusiasm around its certified reactors, Romania project and Tennessee Valley Authority discussions is being weighed against earlier optimism as investors reassess both growth potential and project risk.
Scan how NuScale Power fits into the wider nuclear build out for AI data centers by lining it up against 19 nuclear energy infrastructure stocks.
NuScale Power has a certified reactor design, training centers and early projects on the table, yet the share price has been hit hard this year. Is that combination being valued fairly today or not?
Most Popular Narrative: 91% Undervalued
NuScale Power’s most followed valuation story pegs fair value at about $100 per share, far above the recent $8.89 close, framing current pricing as a deep discount rather than a premium on future expectations.
Vanguard, BlackRock, and Van Eck own approximately 78% of the company. These institutions do not hold dying businesses at scale. They hold positions they intend to be right about over a horizon the market isn't currently pricing. They don't read mirco-analysis, that was always foreign.
See why 37 investors see NuScale Power as 91% undervalued.
Result: Fair Value of $100 (UNDERVALUED)
Still, two pressure points hang over the NuScale Power story. These include the risk that future projects face fresh regulatory or cost setbacks, and the possibility that heavy institutional ownership amplifies any shift in sentiment if those backers change course.
Find out about the key risks to this NuScale Power narrative.
Next Steps
After all this, are you leaning more optimistic or cautious on NuScale Power? Take action while sentiment is still divided and weigh both sides by reviewing the 1 key reward and 3 important warning signs.
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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.
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