Nuclear energy is gaining significance as the global push toward decarbonization accelerates, with small modular reactors emerging as a promising solution. Their ability to provide reliable, around-the-clock, carbon-free baseload power makes them well suited to meet the surging electricity demand from AI-driven data centers, electrification and industrial reshoring. As governments and businesses increasingly seek dependable clean energy sources, small modular reactors offer a scalable way to address growing power needs while supporting decarbonization goals.

Small modular reactors also have several advantages over conventional nuclear plants, including their smaller, modular designs and lower operating costs compared with large nuclear plants. Their potential to be located closer to end users can reduce reliance on extensive transmission and distribution infrastructure, and minimize energy losses. Along with greater siting flexibility, standardized manufacturing and enhanced safety features, these benefits position small modular reactors as a potentially transformative technology for the future of the global energy landscape.

NANO Nuclear Energy (NNE Quick QuoteNNE - Free Report) and NuScale Power Corporation (SMR Quick QuoteSMR - Free Report) can meet surging clean-energy demand through compact, modular reactors that provide dependable, carbon-free power. Their scalable SMR technologies enable faster deployment, support energy-intensive data centers and reduce the need for extensive transmission infrastructure, providing a flexible pathway toward cleaner and more resilient electricity systems.

NANO Nuclear Energy has significant growth potential, supported by rising demand for reliable, carbon-free baseload power and increasing interest in advanced small nuclear technologies. Its microreactor solutions are well positioned to benefit from growing data-center electricity needs, electrification and supportive government policies. The company also advanced its development efforts in mid-2026 when the U.S. Nuclear Regulatory Commission (“NRC”) formally accepted its KRONOS Construction Permit Application, marking a key step toward the reactor’s commercialization.

NuScale Power is well positioned to capitalize on growing demand for clean, reliable baseload electricity. As the first company to secure NRC’s approval for a small modular reactor design, the company has established a strong position in the next generation of nuclear technology. Rising power consumption from data centers, AI applications and industrial electrification, along with global decarbonization efforts, could further boost demand for scalable SMR solutions and support NuScale Power’s long-term growth prospects.

NANO Nuclear Energy and NuScale Power are emerging as key players in the next phase of nuclear innovation. With commercial reactors yet to enter widespread operation, both companies are focused on advancing their reactor designs, navigating regulatory processes and building strategic industry partnerships to support future deployment.

NNE & SMR’s Earnings Estimates

The Zacks Consensus Estimate for NNE’s earnings per share in fiscal 2026 indicates year-over-year growth of 12.26%.
 
The same for SMR’s earnings per share in 2026 implies year-over-year growth of 78.8%.

NNE & SMR’s Surprise History

NANO Nuclear Energy’s earnings beat estimates in each of the last four reported quarters, resulting in an average surprise of 43.80%.

NuScale Power’s earnings missed estimates in each of the last four quarters, resulting in an average negative surprise of 579.36%.

Research and Development

NANO Nuclear Energy and NuScale Power are heavily focused on research and development, advancing next-generation reactor designs, safety features and modular technologies. Both companies’ R&D efforts aim to accelerate regulatory approvals, enhance efficiency and position their small reactors for future commercial deployment.

NANO Nuclear Energy has invested nearly $5.65 million in research and development in the first three months of 2026. NuScale Power has invested around $12.8 million in the same time period.

Approval of the Nuclear Regulatory Commission

In May 2025, the NRC approved NuScale Power’s 77 MWe reactor design, an enhanced version of its earlier certified model. This approval lets utilities rely on the standardized design when applying for combined licenses to construct and operate new nuclear plants.

In mid-2026, NANO Nuclear advanced its KRONOS microreactor project after the NRC accepted its Construction Permit Application, initiating a multi-year regulatory review. The company plans to start prototype construction in the second half of 2027, with commercial prototypes potentially arriving by 2030 or later.

Price Performance

In the past six months, NANO Nuclear Energy’s shares have lost 47.2%, compared with NuScale Power’s decline of 52.8%.

Price Performance (Six months)

Image Source: Zacks Investment Research

Rounding Up

NANO Nuclear Energy and NuScale Power are working toward providing clean energy to their customers and reducing emissions.

Even though both companies are yet to start commercial operation, based on the above discussion, it is evident that NANO Nuclear Energy, which carries a Zacks Rank #2 (Buy), has an edge over NuScale Power, which holds a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.