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SMR Stock Trades Higher Than Industry at 90.42X P/S: Hold or Fold?
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Key Takeaways
NuScale Power is gaining from rising demand for clean energy and AI-powered data centers.
SMR shares are up 73.2% YTD but trade at a steep 90.42X forward P/S ratio.
NuScale Power (SMR - Free Report) shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month price/sales (P/S), SMR is trading at 90.42X, significantly higher than its median of 29.14X and the Zacks Computer and Technology sector’s 6.30X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
However, SMR shares have surged 73.2% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s appreciation of 0.4% and the Zacks Electronics- Power Generation industry’s rise of 69.5%.
The strong performance can be attributed to the high demand for electricity and clean energy, along with the increasing need for AI-powered data centers, which serve as a major driving factor. It also benefits from the Front-End Engineering and Design Phase 2 project and the Technology License Agreement for Romania’s RoPower Doicesti power plant.
YTD Performance
Image Source: Zacks Investment Research
SMR Benefits From Growing Data Center Needs
NuScale Power is gaining strong momentum across various sectors, especially as energy demands continue to rise. The increasing energy demand, driven by sectors like data centers, which require continuous, reliable, and carbon-free energy, has been a major growth driver.
Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power, as its Small Modular Reactor (SMR - Free Report) technology offers consistent, carbon-free energy that can meet the increasing demands of hyperscale data centers.
The company also made significant strides in the manufacturing and commercialization of its SMR technology, including progress with key partners like Doosan Interability and ENTRA1 Energy, which further solidified its position in the market.
This momentum was further reinforced in May 2025, when NuScale Power announced that the U.S. Nuclear Regulatory Commission approved the uprated 250 MWt (77 MWe) design for its advanced SMRs. This approval boosts ENTRA1 Energy’s ability to deliver reliable, carbon-free power using NuScale Power’s SMR technology, accelerating deployment plans by 2030.
To support the growing industry and workforce needs, NuScale Power also recently announced the opening of its largest Energy Exploration Center at George Mason University’s new Fuse building in Arlington, VA. The center features a full-scale 12-module simulator, providing hands-on nuclear science education and workforce development for Virginia’s clean energy future.
SMR Benefits From Tech Giants’ Commitment to Nuclear Energy
NuScale Power continues to attract strong interest from major technology companies and infrastructure capital. Companies like Meta Platforms (META - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Oracle have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.
Microsoft’s commitment to nuclear energy has further validated the demand for SMR technology in powering data centers and heavy industries. Microsoft is also planning an $80 billion investment in fiscal 2025 to build AI-enabled data centers, contributing to the projected sixfold increase in U.S. power demand over the next 20 years.
Meta’s announcement of its goal to seek up to 4 gigawatts of new nuclear power to help meet its AI and sustainability objectives has been noteworthy. This highlights Meta’s commitment to securing reliable, clean energy for its operations.
Companies like Google and Oracle are also showing interest in using SMR technology for large-scale data centers, reinforcing the growing trend toward nuclear solutions for energy-intensive tech operations.
As Alphabet, META Platforms, Microsoft, and Oracle align their energy strategies with sustainable nuclear options, the demand for SMR technology continues to gain momentum, positioning NuScale Power at the forefront of this emerging energy market.
SMR Earnings Estimate Shows Upward Trend
For 2025, the Zacks Consensus Estimate for loss is pegged at 42 cents per share, which has widened by a penny over the past 30 days. SMR reported earnings of 42 cents per share in the year-ago quarter.
NuScale Power’s advancements in SMR technology and its growing partnerships with tech giants and financial institutions position it as a key player in the future of sustainable, carbon-free energy.
However, despite these innovations and collaborations, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. These factors could affect NuScale Power’s market positioning, even with its technological edge. SMR’s stretched valuation is also a concern.
The company is also facing challenges due to the lack of a major customer order and challenges from a tight nuclear supply chain, which may curb its ability to ramp up production or handle multiple orders at once.
Image: Bigstock
SMR Stock Trades Higher Than Industry at 90.42X P/S: Hold or Fold?
Key Takeaways
NuScale Power (SMR - Free Report) shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month price/sales (P/S), SMR is trading at 90.42X, significantly higher than its median of 29.14X and the Zacks Computer and Technology sector’s 6.30X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
However, SMR shares have surged 73.2% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s appreciation of 0.4% and the Zacks Electronics- Power Generation industry’s rise of 69.5%.
The strong performance can be attributed to the high demand for electricity and clean energy, along with the increasing need for AI-powered data centers, which serve as a major driving factor. It also benefits from the Front-End Engineering and Design Phase 2 project and the Technology License Agreement for Romania’s RoPower Doicesti power plant.
YTD Performance
Image Source: Zacks Investment Research
SMR Benefits From Growing Data Center Needs
NuScale Power is gaining strong momentum across various sectors, especially as energy demands continue to rise. The increasing energy demand, driven by sectors like data centers, which require continuous, reliable, and carbon-free energy, has been a major growth driver.
Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power, as its Small Modular Reactor (SMR - Free Report) technology offers consistent, carbon-free energy that can meet the increasing demands of hyperscale data centers.
The company also made significant strides in the manufacturing and commercialization of its SMR technology, including progress with key partners like Doosan Interability and ENTRA1 Energy, which further solidified its position in the market.
This momentum was further reinforced in May 2025, when NuScale Power announced that the U.S. Nuclear Regulatory Commission approved the uprated 250 MWt (77 MWe) design for its advanced SMRs. This approval boosts ENTRA1 Energy’s ability to deliver reliable, carbon-free power using NuScale Power’s SMR technology, accelerating deployment plans by 2030.
To support the growing industry and workforce needs, NuScale Power also recently announced the opening of its largest Energy Exploration Center at George Mason University’s new Fuse building in Arlington, VA. The center features a full-scale 12-module simulator, providing hands-on nuclear science education and workforce development for Virginia’s clean energy future.
SMR Benefits From Tech Giants’ Commitment to Nuclear Energy
NuScale Power continues to attract strong interest from major technology companies and infrastructure capital. Companies like Meta Platforms (META - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Oracle have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.
Microsoft’s commitment to nuclear energy has further validated the demand for SMR technology in powering data centers and heavy industries. Microsoft is also planning an $80 billion investment in fiscal 2025 to build AI-enabled data centers, contributing to the projected sixfold increase in U.S. power demand over the next 20 years.
Meta’s announcement of its goal to seek up to 4 gigawatts of new nuclear power to help meet its AI and sustainability objectives has been noteworthy. This highlights Meta’s commitment to securing reliable, clean energy for its operations.
Companies like Google and Oracle are also showing interest in using SMR technology for large-scale data centers, reinforcing the growing trend toward nuclear solutions for energy-intensive tech operations.
As Alphabet, META Platforms, Microsoft, and Oracle align their energy strategies with sustainable nuclear options, the demand for SMR technology continues to gain momentum, positioning NuScale Power at the forefront of this emerging energy market.
SMR Earnings Estimate Shows Upward Trend
For 2025, the Zacks Consensus Estimate for loss is pegged at 42 cents per share, which has widened by a penny over the past 30 days. SMR reported earnings of 42 cents per share in the year-ago quarter.
NuScale Power Corporation Price and Consensus
NuScale Power Corporation price-consensus-chart | NuScale Power Corporation Quote
Conclusion: Hold SMR Stock for Now
NuScale Power’s advancements in SMR technology and its growing partnerships with tech giants and financial institutions position it as a key player in the future of sustainable, carbon-free energy.
However, despite these innovations and collaborations, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. These factors could affect NuScale Power’s market positioning, even with its technological edge. SMR’s stretched valuation is also a concern.
The company is also facing challenges due to the lack of a major customer order and challenges from a tight nuclear supply chain, which may curb its ability to ramp up production or handle multiple orders at once.
NuScale Power currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.