NuScale Power (SMR), a developer of small modular reactors (SMRs), is trading below $6 per share following a more than 90% drop from its previous peak. The company’s future could be significantly influenced by a potential deal with the Tennessee Valley Authority (TVA) for up to 6 gigawatts of power, which would be the largest SMR deployment in the U.S.
This potential agreement, alongside the broader trend of data centers seeking carbon-free energy, presents a significant opportunity for NuScale. However, the stock remains high-risk due to the early stage of the company and the lack of firm commitments, making it crucial for investors to weigh the potential rewards against the risks of further decline.
NuScale's Technology and Market Potential
NuScale's Power Modules are factory-built SMRs utilizing light-water reactor technology. Each module can generate 77 MWe of power and can be scaled in multiunit arrays to deliver up to 924 MWe, sufficient to power approximately 700,000 homes or support energy-intensive industries like data centers and industrial plants.
The U.S. government is actively pursuing an ambitious goal to quadruple its nuclear energy capacity by 2050, which involves building traditional power plants and accelerating the development of microreactor and SMR technologies. This supportive policy environment, coupled with the increasing demand for clean energy from data centers, creates a favorable backdrop for companies like NuScale.
SMR NuScale Power
NYSE · As of 4:00 PM ET 10/16/26
The Tennessee Valley Authority Deal: A Potential Game-Changer
While NuScale has one project underway in Romania, securing additional pipeline projects is crucial for sustained growth. A significant development that could dramatically impact NuScale's stock is a potential deal with the Tennessee Valley Authority (TVA).
NuScale is collaborating with ENTRA1, and on September 2, 2025, ENTRA1 entered into a non-binding agreement with the TVA for up to 6 gigawatts (GW) of power. This proposed 6 GW project, which would involve deploying as many as 72 NuScale Power Modules, stands to be the largest SMR deployment in the U.S. and could fundamentally alter NuScale's long-term prospects.
During the company's August 5th earnings call, CEO John Hopkins expressed optimism, stating that discussions between ENTRA1 and TVA are progressing positively and that TVA is actively engaged. NuScale aims to finalize firm commitments through power purchase agreements (PPAs), which could establish a model for future U.S. plant developments and accelerate the deployment of SMR technology.
However, until these commitments are secured, NuScale Power remains a high-risk, early-stage, story-driven stock. The significant decline in its share price serves as a stark reminder of this risk. While a TVA deal could lead to a substantial surge, the absence of a firm commitment leaves the stock vulnerable to further declines. Investors must carefully assess the potential upside against the considerable risks involved.
