SMR Plunges 8% in One Month: Should You Buy, Sell, or Hold the Stock?

NuScale Power SMR shares have plunged 7.6% in the year-to-date period against the Zacks Computer & Technology sector’s return of 2.9%. This decline can be attributed to a highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles.

However, the company has outperformed the Zacks Electronics- Power Generation industry, which has declined 10.3% in the year-to-date period. The outperformance can be attributed to advancements in Small Modular Reactor (SMR) technology.  The company’s expanding partner base, which includes tech giants and financial institutions, positions the company as a key player in the future of sustainable, carbon-free energy.

The company is also benefiting from the high demand for electricity and clean energy, as well as the increasing need for AI-powered data centers, which serve as a major driving factor.

SMR Stock's Performance

NuScale Power Benefits From Growing SMR Momentum

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

The company recently announced its strong support for ENTRA1 Energy’s landmark agreement with the Tennessee Valley Authority to deploy up to 6 gigawatts of its U.S. Nuclear Regulatory Commission (“NRC”)-approved SMR technology, the largest SMR deployment program in U.S. history. 

This initiative is designed to provide carbon-free, baseload electricity equivalent to powering the entire Dallas-Fort Worth area, supporting the growing demand from AI, semiconductor manufacturing and critical infrastructure sectors.

NuScale Power’s expanding SMR portfolio has been a key catalyst. In the second quarter of 2025, the company received its second NRC approval for its 77-megawatt design, which strengthened its competitive position and increased customer interest in the SMR space.

SMR Faces Stiff Competition

Despite NuScale Power’s advancements in SMR technology, the company faces stiff competition in the nuclear energy industry from companies such as Oklo OKLO, BWX Technologies BWXT and Constellation Energy CEG.

Oklo is expanding its footprint in the SMR space through its robust portfolio and forming strategic partnerships with entities like Korea Hydro and Nuclear Power and Vertiv.

Building on this momentum and further expanding its footprint, in August, Oklo recently announced a memorandum of understanding with ABB and the commissioning of a digital monitoring room at its Santa Clara headquarters. The ABB-equipped room will serve as a hub for operator training, simulation, and licensing preparation, supporting Oklo’s strategy for fleetwide deployment of its automated Aurora powerhouses.

BWX Technologies is expanding its presence in the SMR market. It is becoming a key player in developing and deploying advanced nuclear technologies. In July, BWX Technologies reached an important milestone by completing the installation and testing of a chemical vapor infiltration furnace. This furnace enables the production of advanced TRISO nuclear fuel. This advancement allows BWX Technologies to create Uranium Nitride TRISO in additively manufactured fuel forms. The new forms offer higher uranium density, longer reactor lifespans and lower system costs.

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 Earnings Estimate Shows Upward Trend

For 2025, the Zacks Consensus Estimate for loss is pegged at 46 cents per share, which has remained unchanged over the past 30 days. NuScale Power 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 Stock is Overvalued

NuScale Power shares are currently overvalued, as suggested by its Value Score of F.

In terms of the forward 12-month price/sales (P/S), SMR is trading at 79.71X, significantly higher than the Zacks Computer and Technology sector’s 6.74X.

Price/Sales (F12M)

Conclusion: Sell SMR Stock for Now

NuScale Power’s advancements in SMR technology, along with its growing partnerships with tech giants and financial institutions, position it as a key player in the future of sustainable, carbon-free energy.

However, despite these innovations and collaborations, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. These factors could affect NuScale Power’s market positioning, despite its technological edge. SMR’s stretched valuation is also a concern.

NuScale Power currently has a Zacks Rank #4 (Sell), which implies that investors should stay away from the stock right now. 

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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