SMR Benefits From Expanding Partner Base: A Sign for More Upside?

NuScale Power SMR is benefiting from an expanding partner base, which includes major technology companies and financial institutions. This expansion positions SMR as a key player in the future of sustainable, carbon-free energy. The company also continues to attract strong interest from major technology companies and infrastructure capital. 

Companies like Meta Platforms, Microsoft, Alphabet and Oracle have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.

Microsoft’s commitment to nuclear energy has further validated the demand for small modular reactor (SMR) technology in powering data centers and heavy industries. Microsoft is also planning an $80 billion investment in fiscal 2025 to build AI-enabled data centers, contributing to the projected six-fold increase in U.S. power demand over the next 20 years.

Companies like Google and Oracle are also showing interest in using SMR technology for large-scale data centers, reinforcing the growing trend toward nuclear solutions for energy-intensive tech operations.  As Alphabet, META Platforms, Microsoft, and Oracle align their energy strategies with sustainable nuclear options, the demand for SMR technology continues to gain momentum, positioning NuScale Power at the forefront of this emerging energy market.

NuScale Power has also made significant strides in the manufacturing and commercialization of its SMR technology, including progress with key partners such as Doosan Interability and ENTRA1 Energy, which further solidifies its position in the market.

SMR Faces Stiff Competition

SMR faces stiff competition in the nuclear energy industry from companies such as Oklo OKLO and Constellation Energy CEG.

OKLO’s expanding clientele has been noteworthy. The company signed a memorandum of understanding with Korea Hydro & Nuclear Power in May 2025 to collaborate on the development and global deployment of its advanced nuclear technology. This partnership aims to jointly advance the design and verification of Oklo’s  Aurora powerhouse and cooperate on early project development efforts. This collaboration is expected to strengthen OKLO’s position in the global nuclear energy market.

In June 2025, Constellation Energy signed a 20-year power purchase agreement with Meta to supply 1,121 MW of emissions-free nuclear energy from the Clinton Clean Energy Center. Constellation Energy’s deal with Meta ensures the plant’s continued operation post-2027, expands output by 30 MW, and supports Meta’s clean energy goals.

SMR’s Share Price Performance, Valuation and Estimates

SMR shares have surged 157.1% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s appreciation of 8.4% and the Zacks Electronics- Power Generation industry’s rise of 132.6%.

SMR Stock Performance

SMR stock is trading at a premium, with a forward 12-month Price/Sales of 119.52X compared with the Computer & Technology sector’s 6.64X. SMR has a Value Score of F.

SMR Valuation

For 2025, the Zacks Consensus Estimate for loss is pegged at 45 cents per share, which has widened by 3 cents over the past 30 days. SMR reported earnings of 42 cents per share in the year-ago quarter.

NuScale Power Corporation Price and Consensus

NuScale Power Corporation price-consensus-chart | NuScale Power Corporation Quote

SMR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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