NuScale Power Corporation (SMR): A Bull Case Theory

We came across a bullish thesis on NuScale Power Corporation on Paradox’s Substack by PARADOX INTELLIGENCE. In this article, we will summarize the bulls’ thesis on SMR. NuScale Power Corporation's share was trading at $41.94 as of October 6th.

NuScale Power (SMR) is emerging as a pioneering player in the small modular reactor (SMR) nuclear sector, with the first NRC-approved SMR design targeting commercial deployment in the late 2020s. The company is uniquely positioned to address the growing demand from data centers for on-site baseload generation, providing reliable power without dependence on traditional transmission infrastructure. NuScale’s regulatory outlook is supported by the AI Action Plan, which is expected to expedite nuclear permitting and compress conventional approval timelines, offering a significant tailwind for deployment.

Financially, the company remains pre-revenue, but its DOE design certification provides meaningful regulatory de-risking, enhancing investor confidence in its technology roadmap. While no direct deals with hyperscalers have been disclosed, NuScale is strategically positioned to capture broader adoption across the tech sector, where demand for reliable, low-carbon energy solutions is accelerating.

The investment thesis is supported by the company’s first-mover advantage in the SMR space, creating the potential for substantial upside if commercial deployment succeeds. However, risks remain material, including execution risk associated with a first-of-its-kind technology, potential regulatory delays despite supportive policy, and competition from alternative nuclear or advanced energy technologies.

Even with these risks, the combination of regulatory backing, strong market potential in hyperscale and critical infrastructure energy applications, and the structural advantages of SMR design make NuScale a compelling long-term growth story. For investors willing to tolerate early-stage execution risk, the company presents a differentiated exposure to the next generation of nuclear power, with potential for outsized returns if it successfully transitions from design certification to commercial operation.

Previously we covered a bullish thesis on NANO Nuclear Energy Inc. (NNE) by Charly AI in May 2025, which highlighted the company’s vertically integrated microreactor platform, proprietary reactor models, and strategic uranium enrichment partnerships. The company's stock price has appreciated approximately by 70.65% since our coverage due to early investor optimism and government support. The thesis still stands. PARADOX INTELLIGENCE shares a similar focus but emphasizes NuScale Power’s NRC-approved SMR design and regulatory tailwinds.

NuScale Power Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held SMR at the end of the second quarter which was 18 in the previous quarter. While we acknowledge the potential of SMR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.