NuScale Power Corporation (SMR): A Bull Case Theory

We came across a bullish thesis on NuScale Power Corporation on MTC’s Substack. In this article, we will summarize the bulls’ thesis on SMR. NuScale Power Corporation's share was trading at $17.48 as of January 30th.

NuScale Power Corporation provides small modular reactor technology solutions. SMR occupies a unique position in the nuclear landscape as the only U.S. company with NRC-certified small modular reactor technology, offering both transformative upside and material execution risk. Despite trading at $20.03 as of January 22, 2026—down 64% from its October 2025 peak—the stock remains up 104% year over year, reflecting sharp sentiment swings tied to policy signals, partnerships, and insider activity.

With a $5.7 billion market cap, zero debt, and nearly $700 million in cash, NuScale has the balance sheet to sustain its development phase, though it continues to burn $40–45 million per quarter and remains pre-revenue at scale. The core investment appeal lies in NuScale’s VOYGR SMR platform, a modular, factory-built nuclear solution with passive safety systems, 36-month construction timelines, and flexibility across power, data centers, hydrogen, and industrial heat.

Its exclusive commercialization partnership with ENTRA1 Energy and a landmark memorandum of understanding with the Tennessee Valley Authority for up to 6 GW of capacity—the largest SMR deployment program in U.S. history—anchors the long-term growth narrative, alongside the Romania RoPower project, NuScale’s most advanced international opportunity. These initiatives are supported by powerful macro tailwinds, as AI and data center electricity demand accelerates and hyperscalers commit tens of billions to nuclear-backed infrastructure.

However, the near-term case is constrained by the absence of binding customer contracts, delays in Romania’s final investment decision, and the non-binding nature of the TVA agreement. Execution risk is further underscored by the prior cancellation of NuScale’s Carbon Free Power Project and ongoing dilution from equity raises, compounded by Fluor’s systematic exit from its large equity stake.

As a result, valuation outcomes are highly scenario-dependent, with bull cases hinging on contract conversion and commercialization progress, and bear cases centered on delays, dilution, and competitive pressure. Overall, SMR represents a high-risk, high-reward bet on a nuclear renaissance driven by AI-era power demand.

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 designs, and exposure to AI-driven power demand. NNE’s stock price has depreciated by approximately 32.94% since our coverage due to dilution and its pre-revenue stage. MTC shares a similar view but emphasizes NuScale’s NRC-certified SMR technology and utility-scale deployment pipeline.

NuScale Power Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held SMR at the end of the third quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of SMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.