We came across a bullish thesis on NuScale Power Corporation on Danny’s Substack by Danny Green. In this article, we will summarize the bulls’ thesis on SMR. NuScale Power Corporation’s share was trading at $12.85 as of February 27th.
Photo from NuScale Power’s website
NuScale Power Corporation provides small modular reactor technology solutions. SMR occupies a unique position in the emerging small modular reactor (SMR) market as the only U.S. company with multiple Nuclear Regulatory Commission-approved designs (50 MWe and 77 MWe), clearing a significant regulatory hurdle that many competitors have yet to achieve. These certifications provide meaningful legitimacy and allow utilities to reference approved designs in license applications, but regulatory success alone does not guarantee commercialization.
The company must still secure firm customer commitments and finance highly capital-intensive, long-duration construction projects in an industry where execution complexity can quickly erode first-mover advantages. Conceptually, NuScale’s business is straightforward—standardized modular nuclear reactors and engineering services designed to deliver carbon-free baseload power aligned with global decarbonization and electrification trends—but operationally it is intricate, requiring navigation of engineering milestones, regulatory reviews, financing structures, and geopolitical energy policy.
Financially, NuScale remains pre-commercial, with revenue growing from roughly $22.8 million in 2023 to about $37 million in 2024, yet reporting heavy net losses near $379 million TTM and substantial cash burn despite liquidity of approximately $690 million post-financing. Strategic partnerships, including ENTRA1 Energy and a development pipeline with the Tennessee Valley Authority, aim to accelerate deployment, while international opportunities such as Romania’s SMR initiative provide optionality.
However, dilution risk from equity raises, long project lead times, and competition from well-capitalized rivals like TerraPower and X-energy underscore execution risk. Valuation remains future-oriented and sensitive to commercialization progress, offering substantial upside if SMR deployment scales, but carrying equally significant downside if timelines slip or projects fail to materialize.
Previously, we covered a bullish thesis on NANO Nuclear Energy Inc. (NNE) by Charly AI in May 2025, highlighting its vertically integrated microreactor platform, strategic partnerships, and exposure to AI-driven power demand and U.S. energy independence. NNE’s stock price has appreciated by approximately 1.99% since our coverage. Danny Green shares a similar view but emphasizes NuScale Power’s NRC-approved SMR designs and commercialization execution risks.
NuScale Power Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held SMR at the end of the fourth quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of SMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
