Its my fudemental belief that retail has a-strayed from real long-term value, and towards a perverse sentiment rooted purely in numbers. The market looked at NuScale's 2023 project cancellation and saw a failed company. That's the wrong frame. What actually happened is that a first-of-kind technology encountered the first regulatory hurdle and cost discovery, which is not a verdict on the technology, it's the expected friction of building something that has never been built at commercial scale before.
The structural case hasn't moved.
AI data centers are now the fastest-growing source of electricity demand in the United States. Hyperscalers have publicly committed to carbon-neutral power. The only energy source that is simultaneously clean, always-on, and scalable to the density these facilities require is nuclear. Solar and wind cannot provide the uninterrupted baseload that computation demands. That's not a policy opinion — it's an engineering constraint.
Small modular reactors solve the specific problems that made conventional nuclear uneconomical: factory manufacturing reduces construction risk, smaller footprint enables co-location with demand, modular deployment matches capital expenditure to actual need. NuScale holds the only SMR design currently certified by the Nuclear Regulatory Commission. That certification took years and hundreds of millions of dollars. It is a moat, not a footnote. Energry is becoming more diversified, which is a net-postive for many sectors.
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.
The noise is real. The structure is louder.
Have other thoughts on NuScale Power?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeHow well do narratives help inform your perspective?
Disclaimer
The user Delphic holds no position in NYSE:SMR. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
