Less than a year ago, NuScale Power (SMR +0.11%) was the poster child of the artificial intelligence (AI) energy craze. The nuclear energy stock catapulted to an all-time high of $57.42 on Oct. 16, 2025.
The rally, however, fizzled out even faster than it built up, with NuScale shares slumping 61% in just the last quarter of 2025 and failing to recover since. The stock has now fallen 75% in one year and is trading below $10 as of this writing.
Make no mistake: The AI power narrative isn’t hype. AI data centers consume astronomical amounts of power, putting immense pressure on existing grids. This has forced governments and corporations to seek reliable, low-carbon energy alternatives to meet their growing power needs without abandoning their carbon-emission goals.
Yet NuScale became a victim of its own circumstances. A perfect storm of weak operational numbers, class action lawsuits, and its largest shareholder, Fluor, cashing out after the stock’s rally sent the stock crashing.
That said, what NuScale is building holds solid potential to fill the global energy gap. Does that make the nuclear energy stock a bargain buy under $10, or is it still a value trap?
Image source: Getty Images.
What exactly does NuScale Power do?
Let’s first understand what NuScale’s business is.
Founded in 2007, NuScale is developing small modular reactors (SMRs). They are designed to be simpler, safer, more scalable, and more cost-effective than traditional nuclear reactors. SMRs are also largely factory-built, which means shorter construction and installation times.
Its core patent is the Nuclear Power Module (NPM). Each individual module is a self-contained reactor capable of generating 77 megawatts electric of carbon-free electricity. Several NPMs can be grouped together to build a power plant that can then be installed virtually anywhere that requires round-the-clock, reliable energy, such as data centers.
NuScale’s SMR design is already approved by the U.S. Nuclear Regulatory Commission, and the company has advanced from the research and development stage and has started production of the first modules.
So why is the seemingly promising nuclear energy crashing? There are three problems here.
Today’s Change
(0.11%) $0.01
Current Price
$9.04
Key Data Points
Market Cap
Day’s Range
$8.77 – $9.24
52wk Range
$8.55 – $57.42
Volume
25.2M
Avg Vol
35.7M
Gross Margin
19.69%
Where’s the customer?
The core thesis of buying NuScale is that tech giants and utilities will buy its modules and reactors and lock in several years of contracts. The company, however, hasn’t yet entered into any binding contract with any customer to deliver NPMs.
Payment milestones, but no revenue
NuScale has signed ENTRA1 as its exclusive global partner to develop and commercialize power plants using NPMs, but ENTRA1 hasn’t yet signed any binding power purchase agreements. Moreover, NuScale is bound to pay ENTRA1 milestone fees for each NPM or NuScale product that could be used in a power plant. There’s no revenue guarantee here, and this bizarre arrangement has even prompted several investor class action lawsuits.
Nothing concrete before 2030
Even with all the design and regulatory approvals, NuScale doesn’t expect to deliver its first NPMs before 2031. That’s if there aren’t any delays or complications in design, development, and production.
I’d steer clear of NuScale Power stock, even at under $10 per share, until the company can prove its technology is commercially viable.