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SMR Stock Soars 93% in a Month: What Should Investors Do Now?

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NuScale Power (SMR - Free Report) shares have surged 92.8% over the past month, significantly outperforming the Zacks Computer and Technology sector’s growth of 8.5% and the Zacks Electronics - Power Generation industry’s return of 91.6%.

SMR’s strong stock price performance is attributed to a robust top-line performance in the first quarter of 2025, with total revenues rising year over year to $13.4 million from $1.4 million, driven by the Front-End Engineering and Design (FEED) Phase 2 project and the Technology License Agreement for Romania’s RoPower Doicesti power plant.

NuScale’s significant progress in the transition from research and development to commercialization, coupled with an improved liquidity position of $521.4 million in cash, cash equivalents and short-term investments as of the quarter-end, ensures sustained financial support for project execution and operational stability.

NuScale Advances SMRs With Strong Partner Network

NuScale’s strategic collaborations are central to its global expansion and the advancement of its Small Modular Reactor (SMR - Free Report) technology. Its exclusive partnership with Energy ENTRA1 supports a project pipeline of more than 30 gigawatts across various sectors, including data centers, utilities and petrochemical enterprises. ENTRA1 is tasked with the development, financing, ownership and operation of SMR-powered plants worldwide.

NuScale’s partnership with RoPower Nuclear in Romania reached a milestone, with the 462 MWe SMR project now in the FEED Phase 2. Backed by Fluor Corporation’s engineering expertise, and Doosan Enerbility’s manufacturing of CRDM prototypes and testing infrastructure, the project is moving closer to commercial deployment.

NuScale is on track for 2030 deployment, with the U.S. Nuclear Regulatory Commission approval expected by July 2025 for its 77 MWe module. Its regulatory lead over competitors reinforces its first-mover advantage in the commercial SMR market.

The company continues to strengthen its supply chain, with key agreements with Doosan, Framatome and Paragon. A recent supplier engagement involving more than 30 vendors addressed critical path items and short-term investment plans.

Factors Weighing on NuScale

NuScale has yet to secure its first firm customer order, creating uncertainty over its near-term revenue prospects. The expectation has now been pushed back to late 2025, with the long wait raising concerns about the company's ability to generate meaningful cash flow and achieve financial stability in the absence of confirmed commercial demand.

Despite these concerns, NuScale benefits from increasing interest in SMR technology among major tech giants and infrastructure investors like Meta Platforms (META - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Oracle. These companies are seeking sustainable and scalable energy solutions to meet the surging power demands of AI-driven data centers.

NuScale stands to benefit as Meta, Microsoft, Alphabet and Oracle increasingly explore nuclear options, including SMRs, as part of their long-term strategies.

NuScale is also facing challenges from a tight nuclear supply chain, which may curb its ability to ramp up production or handle multiple orders at once. This can lead to delays, higher costs, and lower efficiency. As a result, meeting its 2030 deployment goal could become harder, raising concerns about its readiness and long-term growth.

SMR Bottom-Line Estimates Trend Down

For 2025, the Zacks Consensus Estimate for loss is pegged at 41 cents per share, unchanged over the past 30 days. This marks a sharp decline from the year-ago quarter's reported earnings of 42 cents.

Conclusion: Hold SMR Stock for Now

NuScale’s global collaborations and regulatory milestones highlight its long-term potential in the SMR space. However, the lack of a major customer order and supply-chain bottlenecks present significant challenges that may hinder near-term execution.

SMR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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