Key Points
Even a stock that recently reached a 52‑week low can experience a modest rebound. NuScale Power (NYSE: SMR) rose 10.1% in August, according to S&P Global Market Intelligence data, after a challenging July.
Has the nuclear‑energy stock bottomed out, and is now an appropriate time for investors to consider a purchase amid the AI‑driven demand for power?
NuScale’s Q2 revenue plunged 99%
On August 25, NuScale announced plans to introduce nuclear‑focused AI tools leveraging the Nuclearn and NPX AtomAssist platforms. Pilot testing indicated that engineers could locate critical design information up to 80 % faster.
In essence, NuScale intends to employ specialized AI to rapidly parse extensive technical documentation and regulatory filings, enabling faster decision‑making and avoiding costly delays during the transition from design to construction of its small modular reactors.
Conversely, earlier in August NuScale reported Q2 revenue of just $75,000, a 99 % decline from $8 million reported a year earlier.
The decline was not driven by a loss of core business; rather, it resulted from the completion of front‑end engineering design for a Romanian project, leaving the company without an immediate replacement revenue stream and continuing to incur substantial losses and cash burn.
Should you buy NuScale Power stock now?
By the end of Q2, NuScale held $1.9 billion in cash and investments, an increase of $900 million from the prior quarter. On August 11, it filed a prospectus to offer an additional $750 million in shares, creating further dilution that will be justified only if NuScale secures a power purchase agreement (PPA) before investor patience wanes. This development represents the most significant catalyst investors are anticipating, given the still‑unproven commercial execution. NuScale benefits from a regulatory advantage, as its SMR design has already received approval from the U.S. Nuclear Regulatory Commission. The AI boom has sparked unprecedented demand from hyperscalers and data centers for large‑scale, continuous, carbon‑free power. NuScale’s certified SMR design positions it well to meet this demand, though commercial execution remains unproven, with its first operational reactor still several years away. Until its commercial partner, ENTRA1 Energy, converts non‑binding framework agreements into signed PPAs and translates regulatory milestones into firm factory orders, NuScale Power’s stock will continue to be driven by speculation rather than tangible revenue or earnings.
NuScale Power was not included in the recent list of the 10 stocks recommended by the Motley Fool Stock Advisor analyst team, which suggests that the firm does not view the stock as a top investment opportunity at this time. Investors should carefully assess the company’s limited revenue, ongoing cash burn, and the uncertainty surrounding its commercial rollout before making a decision.
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