Is Nuclear Energy's Comeback Making SMR Stock Worth Considering at Current Prices?

The Nuclear Sector Is Experiencing a Major Resurgence

The demand for clean energy solutions has never been more urgent. Artificial intelligence data centers require massive amounts of power to operate, and traditional energy sources are increasingly seen as insufficient. This is where companies like NuScale Power (NYSE: SMR), a developer of nuclear small modular reactors, are positioned to play a critical role. The nuclear industry is experiencing genuine momentum as investors and policymakers recognize the technology’s potential to support AI infrastructure and decarbonization goals simultaneously.

Understanding SMR’s Current Market Position

NuScale Power’s stock has experienced significant volatility recently. After reaching a 52-week high of $57 in October, the shares have since retreated substantially, now trading in the $17 range as of mid-December. This represents a correction of more than 58% from its peak over the past six months. The pullback reflects broader investor caution regarding the company’s near-term path to profitability and revenue generation.

Several factors have contributed to the stock’s decline. Position reductions by certain investors, combined with analyst concerns about the company’s commercial readiness, have created headwinds. Perhaps more significantly, NuScale remains in a critical phase where it must demonstrate tangible progress in customer acquisition to validate its business model.

The Path Forward: Securing Commercial Viability

As an emerging player in the nuclear sector, NuScale faces the typical challenges of a technology company scaling from development into commercialization. The company is actively pursuing customer relationships, including a notable potential partnership with ENTRA1. However, these arrangements remain incomplete, with full revenue generation likely extending into 2027 or beyond.

This timeline underscores why the market remains cautious. NuScale must move beyond concept validation and begin signing binding customer agreements that generate measurable revenue. The company’s success hinges on its ability to lock in long-term contracts during this critical window.

Why This Moment Could Be Pivotal

Despite current uncertainties, the investment case for NuScale rests on a compelling industry tailwind. The convergence of AI’s explosive growth, stricter energy regulations, and renewed political support for nuclear power creates an environment where small modular reactors could experience rapid adoption. If NuScale can secure even a handful of enterprise customers in the near term, the current valuation under $20 per share may represent a meaningful opportunity for contrarian investors.

The company’s technology addresses a genuine market need, and the timing appears favorable. However, execution remains paramount, and investors should view this as a speculative holding tied to near-term commercial progress.