License obtained – barrier removed
July 2025 was a watershed year for NuScale Power (NYSE: SMR). After years of navigating through bureaucracy, the U.S. Nuclear Regulatory Commission (NRC) finally approved the standard design for NuScale’s 77 MW small-module reactor. The move doesn’t just close the certification phase – it opens a window for commercialization of a technology that until recently seemed a prospect of the distant future.
For investors, this signal is not so much a technical one as a market one. NRC approval removes a key barrier to contracting with utilities, data centers and industrial customers. It was this event that triggered a surge of interest in SMR stock, causing quotes to jump nearly 12% over the course of two sessions. This is not a short-term surge. This is the point from which the company’s revaluation begins.
The market outlook for NuScale Power: from demonstration to sale
The only licensed SMR technology in the United States
NuScale is currently the only SMR developer in the U.S. that has been fully licensed for a commercial project. This gives the company a temporary advantage amid growing demand for sustainable energy.
It is indicative that not only energy players, but also large technology corporations have begun to show interest in the technology. Rumor has it that talks are underway with a number of hyperscale datacenters that are experiencing power shortages amid growing AI loads. This trend could translate into real deals in the near future that could structurally change the demand for NuScale products.
NuScale’s first NuScale contract and the impact on SMR stock
The company confirms: the first full-fledged contract could be signed before the end of the year. Its structure implies the delivery of four to six SMR modules with integration into the local power grid. Such deals, given the long implementation cycle, become not only a venture, but also a factor of strategic sustainability for NuScale Power.
Most importantly, these will be the first real revenue streams, which may have a positive impact on the company’s multiples and investment interest from large funds. It is quite possible that the conclusion of the first deal will create a market ripple effect: other customers who have been waiting for a turning point will begin to move more aggressively to sign their agreements.
Hydrogen, water and the new economics of NuScale Power applications
Technology beyond energy
Interestingly, NuScale is not limited to just supplying reactors. In July, it unveiled a concept for combined SMR applications in green hydrogen production and seawater desalination. These areas strengthen the sustainability of the company’s business model by reducing its dependence on traditional energy markets.
This approach opens the door for NuScale to enter entirely new sectors: clean fuels and water supply. And while hydrogen is already seen as one of the key areas for decarbonizing the industry, desalination is an obvious answer to climate challenges, especially in arid regions.
Potential for multi-segment applications to grow SMR shares
It’s still about pilot projects, but the very fact that NuScale is ready to pursue multi-segment applications of its technology sets the company apart from its competitors. Especially against the backdrop that other startups – including TerraPower and X-Energy – are still in the design and approval stages.
Against this backdrop, SMR stock takes on an important quality – it’s starting to be seen not just as a bet on nuclear power, but as a ticket to the future of energy with broad segment coverage. This could increase interest from ESG-oriented investors looking for companies with positive climate and technology impact.
NuScale Power’s financial context: liquidity is there, expenses are plentiful
A balance sheet that can withstand the wait
The company has more than $500 million in liquidity left on its books, according to its first half 2025 report. This is backed, among other things, by the ongoing equity offering program (ATM), which raised another $100 million in July.
This cachet gives confidence in NuScale’s ability to survive the period between certification and first shipments. This is especially important given the high capital intensity of launching new power modules and the long project cycle in the nuclear industry.
The scalability issue and investor reaction to SMR stock
Nevertheless, costs remain high. The company continues to fund expanded R&D, maintain demonstration centers at universities, and negotiate with international customers. Meanwhile, recurring legal, regulatory and production support costs for projects are on the rise.
For a long-term investor, the key question is not “when deliveries will start”, but “what will be the scalability”. The answer to this question will depend on logistics, infrastructure, the pace of construction of production facilities and support from government programs.
Market reaction to SMR stock and analyst reassessment
From venture to structure
SMR stock is still a high-risk story. But that risk is now taking on a market structure. Analysts’ predictions vary, but most recognize it: the NRC approval is a game changer. The company is moving from the “project” phase to the “commercial opportunity” phase. Some funds have started to carefully build up stakes, counting on possible entry into the hydrogen energy market and NuScale’s participation in national infrastructure initiatives. It is indicative that the growth of quotations in July was accompanied not only by the surge of news activity, but also by the growth of trading volumes.
It is quite possible that after the release of the financial report for the second quarter of 2025 (expected in August), the market will get additional reasons to revise NuScale’s valuation. Especially if the report reveals new partnerships or contracts.
What’s next for NuScale Power and SMR stock?
Industry rate and investment horizon
A potential investor following the decarbonization trend may well consider NuScale Power as part of a portfolio with high potential on a 5-10 year horizon. However, it is important to realize that this is a long game. In the coming months, the main trigger will be the award of the first contract and its structure.
Will there be an industrial customer ready to integrate SMR into real-world energy applications? Will it be a data center or a utility? The questions remain open. But a key milestone has already been passed. Against a backdrop of geopolitical volatility, growing interest in energy autonomy, and capacity shortages in high-tech industries, NuScale Power has a chance to carve out a unique place on the global map of new energy solutions. And SMR stock is becoming a reflection of that bet.
We should add that NuScale’s prospects become especially interesting against the backdrop of a reassessment of the role of nuclear power in the energy mix of developed countries. More and more countries are considering small-module reactors as a real tool not only for energy security, but also for technological sovereignty. This means that NuScale has a battle ahead of it for global markets and its status as an exporter of next-generation U.S. nuclear technology.
Practical advice for investors
Investors interested in SMR stock should pay attention to the following aspects:
- Choosing a strategy. For those who prefer a conservative portfolio, NuScale may be interesting as a venture capital add – a share of no more than 5% of the portfolio.
- Keep an eye on reports. The most important trigger will be quarterly results and confirmed contracts. This will allow you to understand whether the company is moving to the monetization phase.
- Consider the competition. Although NuScale is the only licensed player in the U.S., competitors from Canada, South Korea and China are actively catching up.
- ESG focus. SMR stock may be a good fit for investors forming ESG-focused strategies.
- Calculate the horizon. This is not a “growth in a week” stock. The potential is for 3-10 years, especially taking into account infrastructure and international processes.
A well-built portfolio including such stocks can bring significant returns if you remain disciplined and understand the risks.
Investors building portfolios with a 5–10 year horizon are increasingly diversifying their investments between innovative energy and promising sectors of medicine. The biotechnology sector deserves special attention, where breakthrough genome editing technologies are opening up new markets. This is discussed in more detail in the article CRISPR and biotech equity investments as a new growth vector, which highlights examples of companies whose shares have already become growth drivers in 2025.
On the other hand, players from energy-related sectors, such as aerospace infrastructure, are emerging on the strategic investment horizon. Companies such as Rocket Lab are receiving new orders for the launch of small satellites, including missions related to energy monitoring and nuclear safety. These trends are highlighted in the article Rocket Lab $RKLB Steps Out of the Shadows, which analyzes the issuer’s financial and technological prospects.
