NuScale Power Is Down 38% This Year: Here's What the Next 5 Years Could Look Like
NuScale Power's stock has been on a volatility roller coaster, down 38% this year. The company has a nuclear reactor design approved, but it will be years before one is built, and heavy cash burn will likely sink this stock further.
Intelligence analysis by Llama
NuScale Power's stock has been on a roller coaster, down 38% this year, due to its unfulfilled promise of building a nuclear reactor. The company's heavy cash burn will likely continue to sink the stock.
Imagine you have a toy box full of blocks, and you need to build a really cool castle. But, you don't have the right blocks to build it, and you're running out of money to buy the blocks you need. That's kind of like what's happening with NuScale Power's stock. They have a design for a special kind of nuclear reactor, but they don't have the money to build it, and that's making their stock go down.
Analysis
A $60B Vote of Confidence
NuScale Power's stock has been on a roller coaster, down 38% this year, due to its unfulfilled promise of building a nuclear reactor. The company's heavy cash burn will likely continue to sink the stock. Despite this, the company has a nuclear reactor design approved by the Nuclear Regulatory Commission (NRC), and it has partnered with ENTRA1 Energy to develop power plants for small modular nuclear reactors (SMRs). The Tennessee Valley Authority has committed to buying 6 gigawatts of power utilizing NuScale's SMR technology, which could mean a boom in future demand. However, the company's development timeline with ENTRA1 Energy is much longer than expected, and its projects with the Tennessee Valley Authority, Poland, and Romania will not generate revenue until 2030, assuming no further delays. This is going to miss the meat of the AI data center build-out, which is why the boom is primarily being supplied by natural gas. Right now, NuScale Power's free cash flow is highly negative, at $750 million over the last 12 months, while revenue is negligible. If this continues -- as it looks like it will -- the stock will be much lower five years from now.
Why Cursor?
NuScale Power's stock has been on a roller coaster, down 38% this year, due to its unfulfilled promise of building a nuclear reactor. The company's heavy cash burn will likely continue to sink the stock. Despite this, the company has a nuclear reactor design approved by the Nuclear Regulatory Commission (NRC), and it has partnered with ENTRA1 Energy to develop power plants for small modular nuclear reactors (SMRs). The Tennessee Valley Authority has committed to buying 6 gigawatts of power utilizing NuScale's SMR technology, which could mean a boom in future demand. However, the company's development timeline with ENTRA1 Energy is much longer than expected, and its projects with the Tennessee Valley Authority, Poland, and Romania will not generate revenue until 2030, assuming no further delays. This is going to miss the meat of the AI data center build-out, which is why the boom is primarily being supplied by natural gas. Right now, NuScale Power's free cash flow is highly negative, at $750 million over the last 12 months, while revenue is negligible. If this continues -- as it looks like it will -- the stock will be much lower five years from now.
The Road Ahead
NuScale Power's stock has been on a roller coaster, down 38% this year, due to its unfulfilled promise of building a nuclear reactor. The company's heavy cash burn will likely continue to sink the stock. Despite this, the company has a nuclear reactor design approved by the Nuclear Regulatory Commission (NRC), and it has partnered with ENTRA1 Energy to develop power plants for small modular nuclear reactors (SMRs). The Tennessee Valley Authority has committed to buying 6 gigawatts of power utilizing NuScale's SMR technology, which could mean a boom in future demand. However, the company's development timeline with ENTRA1 Energy is much longer than expected, and its projects with the Tennessee Valley Authority, Poland, and Romania will not generate revenue until 2030, assuming no further delays. This is going to miss the meat of the AI data center build-out, which is why the boom is primarily being supplied by natural gas. Right now, NuScale Power's free cash flow is highly negative, at $750 million over the last 12 months, while revenue is negligible. If this continues -- as it looks like it will -- the stock will be much lower five years from now.
Key points
- NuScale Power's stock has been on a roller coaster, down 38% this year.
- The company has a nuclear reactor design approved by the NRC, but it will be years before one is built.
- NuScale Power's free cash flow is highly negative, at $750 million over the last 12 months.
- The company's projects with the Tennessee Valley Authority, Poland, and Romania will not generate revenue until 2030, assuming no further delays.
If NuScale Power can find a way to build its nuclear reactor and start generating revenue, its stock could potentially double in the next five years. However, this is a long shot, and the company's heavy cash burn will likely continue to sink the stock.
If NuScale Power continues to burn through cash and fails to generate revenue, its stock could be much lower in five years. The company's unfulfilled promise of building a nuclear reactor and its heavy cash burn make it a high-risk investment.
