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NuScale nuclear stock crashes 75% in a year; no customer contracts yet

Yahoo Finance AI3h ago
NuScale nuclear stock crashes 75% in a year; no customer contracts yet

Key takeaway

NuScale Power's stock has crashed 75% in one year despite developing small modular reactors (SMRs) designed for AI data centers and other facilities needing reliable power. The core problem: the company has no binding contracts with any customers to deliver its modules, relies on milestone fees from its exclusive partner ENTRA1 rather than revenue, and does not expect to deliver its first units before 2031. While the underlying energy demand is real, the company's commercial pathway remains unproven.

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3 Key Points

  • What happened

    NuScale Power, a developer of small modular reactors (SMRs), has seen its stock fall 75% over one year and is now trading below $10, after hitting an all-time high of $57.42 in October 2025. The company has no binding contracts with customers to deliver its Nuclear Power Modules (NPMs), each capable of generating 77 megawatts electric, and does not expect to deliver its first units before 2031.

  • Why it matters

    While AI data centers' growing power demand has created real need for reliable, low-carbon energy, NuScale's business model remains unproven. The company signed ENTRA1 as its exclusive global partner but collects only milestone fees from ENTRA1, not revenue, and ENTRA1 has signed no binding power purchase agreements. Investors have filed class action lawsuits over this arrangement.

  • What to watch

    NuScale's SMR design is already approved by the U.S. Nuclear Regulatory Commission and production has begun, but the company must prove commercial viability by securing actual customer contracts. No revenue is guaranteed before 2031, if there are no delays.

Context & Analysis

NuScale Power arrived at a critical moment: tech giants and utilities are actively seeking reliable, low-carbon energy to power AI data centers without abandoning carbon-emission goals, and small modular reactors fit that profile well. The company's SMR design has already cleared U.S. Nuclear Regulatory Commission approval and production has started, which are substantial milestones. Yet the stock's collapse from $57.42 to under $10 reflects three hard commercial realities. First, despite the energy demand being real, NuScale has zero binding customer contracts—the core thesis of the investment was that tech giants and utilities would lock in multi-year deals. Second, its partnership structure with ENTRA1 is unusual: ENTRA1 acts as the exclusive commercialization partner globally, but NuScale receives only milestone fees, not revenue, when modules are used. ENTRA1 itself has not signed binding power purchase agreements, leaving the revenue chain broken. Third, even if everything proceeds without delay, NuScale does not expect to deliver its first units before 2031. These gaps have prompted investor class action lawsuits. The company's technology may fill a genuine global energy gap, but until it proves the business model works by securing actual binding contracts with customers, the stock remains a speculative bet on a future that is many years away.

FAQ

When will NuScale deliver its first small modular reactors?
NuScale does not expect to deliver its first NPMs before 2031, provided there are no delays or complications in design, development, and production.
Who has agreed to buy NuScale's reactors?
NuScale has not yet entered into any binding contract with any customer to deliver NPMs. The company signed ENTRA1 as its exclusive global partner, but ENTRA1 has not signed any binding power purchase agreements.
How much electricity can each NuScale module generate?
Each NuScale Nuclear Power Module (NPM) is designed to generate 77 megawatts electric of carbon-free electricity. Several NPMs can be grouped together to build a power plant that can be installed virtually anywhere requiring round-the-clock energy, such as data centers.

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