NuScale: A Reactor and a Prayer

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NuScale Power. It’s a name that sounds like it belongs to a particularly ambitious plumbing company, doesn’t it? Yet, here we are, discussing its stock, which recently experienced a bit of a tumble. It hit $57 a share a while back, a peak of optimistic delusion, then promptly lost about three-quarters of its value. A harsh lesson, really, in the fundamental truth that markets are, at their core, spectacularly unpredictable. It’s currently hovering around $13, which, let’s be honest, isn’t exactly setting the world on fire.

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But things, apparently, are looking up. Or so they say. The company is, shall we say, regaining momentum. It’s a curious phrase, “regaining momentum,” as if momentum were a lost set of car keys. Still, they’ve got a project in Romania, which is promising. Six small modular reactors, enough to power a moderately sized city, slated for operation in 2033. That’s a good seven years away, of course. Plenty of time for unforeseen complications, geopolitical shifts, or, frankly, just a change of heart. It’s like building a cathedral – you start with enthusiasm and end with a nagging sense of exhaustion.

NuScale’s First Project Gets the Green Light (Eventually)

The predicament with NuScale, you see, is this: they have a design for a small modular reactor, officially licensed by the authorities (a significant achievement, admittedly), but they haven’t actually built one yet. It’s a bit like having a blueprint for a magnificent yacht and then realizing you’ve run out of wood. They’ve had a few projects lined up, one with the Idaho National Labs, which was cancelled due to cost overruns. Apparently, building things is expensive. Who knew?

The Romanian project, though, is a step forward. Six reactors, 462 megawatts of power. It’s ambitious, certainly. And the Tennessee Valley Authority has agreed to potentially deploy up to six gigawatts of power. That’s a lot of reactors. It’s also a lot of hope resting on a relatively untested technology. One can’t help but wonder if they’ve accounted for the inevitable bureaucratic hurdles, the unexpected engineering challenges, and the general tendency of large-scale projects to go over budget and behind schedule.

A $3 Trillion Nuclear Opportunity (Or a Very Expensive Gamble)

Then there’s the looming demand for electricity, driven by things like artificial intelligence and data centers. Apparently, we’re going to need a lot more power. Bank of America estimates a $3 trillion investment in nuclear energy by 2050. A truly staggering sum. If NuScale could capture even 5% of that, they’d be looking at $150 billion. Which, of course, is a big “if.” It’s like saying, “If pigs could fly…”

The reality, as always, is more complicated. They haven’t deployed their technology at scale, so we don’t really know what the operating costs will be. They’re currently burning through cash, and revenue growth is likely to be steady, but not exactly explosive. It’s a bit like trying to start a fire with damp kindling. You can get a few sparks, but it takes a lot of effort.

Analysts, in their infinite wisdom, have assigned a price target of around $29 a share. About 123% higher than the current price. Which sounds optimistic, doesn’t it? The stock is volatile, though, and will likely remain so until they can demonstrate a consistent ability to build and operate reactors. It could rise above $20 again. But if you’re considering investing, be prepared to part with your money. And perhaps have a stiff drink handy. Because, in the world of corporate finance, a little cynicism is always a good thing.

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2026-02-28 22:12