NuScale Power (SMR), a developer of small modular reactors, is trading below $6 per share and faces significant investor scrutiny after a 90% drop from its peak. The company’s future hinges on securing new contracts, particularly a potential mega-deal with the Tennessee Valley Authority (TVA) that could involve deploying up to 72 SMR modules.
This potential deal, facilitated by ENTRA1, represents the largest SMR deployment in the U.S. and could revolutionize NuScale’s outlook. However, the stock remains a high-risk investment until firm commitments are finalized, with the possibility of further declines if the deal doesn’t materialize.
The landscape of nuclear energy is experiencing a significant shift, increasingly intertwined with the booming data center industry. A prime example is Alphabet's Google, which recently secured a 20-year power purchase agreement with Constellation Energy, the nation's leading nuclear operator. This move, aimed at powering its expanding digital infrastructure, sent Constellation's stock soaring by 12% on October 6th, with a ripple effect felt across other nuclear energy stocks.
Among the intriguing players in this evolving sector is NuScale Power (SMR), an early-stage developer of small modular reactors (SMRs). As hyperscale data center operators increasingly seek reliable, carbon-free energy solutions, NuScale presents a unique opportunity for investors to participate in the resurgence of nuclear power. The company's stock, currently trading below $6 per share, is largely driven by its future potential, but a significant catalyst could be on the horizon.
NuScale Power's Stock Plummets in 2026
NuScale's Power Modules are factory-manufactured SMRs utilizing light-water reactor technology. Each module has a capacity of 77 MWe (megawatt-electric) and can be deployed in multi-unit arrays to generate up to 924 MWe. This output is substantial enough to power approximately 700,000 homes or cater to the high energy demands of data centers and industrial facilities.
The stock experienced a significant surge last year, fueled by increased data center investments and supportive initiatives from the Department of Energy aimed at bolstering the nuclear energy industry. The U.S. has ambitious targets, aiming to quadruple its nuclear energy capacity by 2050, which includes building traditional power plants and fast-tracking the development of microreactor and SMR technologies.
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NuScale Power
NYSE · As of 4:00 PM ET 10/16/26
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The past year has seen NuScale's stock plummet dramatically. From a peak of approximately $57 per share, the company's valuation has dropped by over 90%. This sharp decline can be attributed to several factors, including a general downturn in nuclear energy stocks, the divestment of its stake by early investor Fluor, and a scarcity of new commitments for NuScale's SMR technology.
A Potential Game-Changer: The Tennessee Valley Authority Deal
While NuScale has one project underway in Romania, securing additional pipeline projects is crucial for sustained growth. A significant deal with the Tennessee Valley Authority (TVA) could be the catalyst that propels the stock upwards.
NuScale is collaborating with ENTRA1 on power plant development. On September 2, 2025, ENTRA1 entered into a non-binding agreement with the TVA for up to 6 gigawatts (GW) of power across its service territory. This potential 6 GW project represents the largest SMR deployment envisioned in the U.S. and would necessitate the deployment of as many as 72 NuScale Power Modules. Finalizing this agreement would dramatically reshape NuScale's long-term prospects.
CEO John Hopkins conveyed optimism during NuScale's August 5 earnings call, stating that the company is "extremely encouraged by our conversations that ENTRA1 and TVA are having" and that "TVA is actively engaged." NuScale aims to secure firm commitments through power purchase agreements (PPAs), which could establish a precedent for future domestic projects and accelerate the development of U.S. nuclear power plants.
Until such firm commitments are secured, NuScale Power remains a high-risk, early-stage, story-driven stock. The past year's significant decline serves as a stark reminder of this volatility. While the stock could see a substantial surge upon securing the coveted TVA deal, the absence of a firm commitment leaves it vulnerable to further depreciation. Investors must carefully evaluate the potential upside against the considerable risk of additional losses.
