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NuScale Power: The Next Nuclear Energy Opportunity?

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  Published in Stocks and Investing on Saturday, December 13th 2025 at 13:01 GMT by The Motley Fool

NuScale Power: The Next Nuclear Energy Opportunity?
(A comprehensive 500‑plus‑word summary of The Motley Fool’s December 10, 2025 article on NuScale Power)

1. The Big Picture: Why NuScale Is Gaining Attention

The article opens by framing nuclear power as “the only truly low‑carbon energy source that can operate 24/7 and fill the gap left by intermittent renewables.” While the nuclear industry suffered a high‑profile setback after Fukushima, a new generation of technology—small modular reactors (SMRs)—is now positioned to revive the sector.

NuScale Power, Inc. (NASDAQ: NUSA) is presented as the front‑runner in this space. The company’s patented 50‑MW SMR design promises higher safety, lower construction costs, and a “plug‑and‑play” modular approach that could dramatically shorten the plant‑building timeline. The article suggests that, if the U.S. nuclear renaissance takes hold, NuScale could become a “millionaire maker” for its investors, not because of an explosive profit stream today, but because of its strategic positioning in a market set to grow rapidly.

2. NuScale’s Technology: The “Nuclear Engine for the 21st Century”

Passive Safety:
NuScale’s reactor uses a passive, gravity‑driven cooling system that eliminates the need for active pumps. The design includes a built‑in containment vessel that can handle a loss‑of‑cooling event without external intervention—a feature that the NRC (Nuclear Regulatory Commission) highlighted as a key safety advantage.

Modularity & Scalability:
Each NuScale module is a 50‑MW unit that can be manufactured in a factory, shipped to a site, and assembled on a modular “stack” of up to 12 units. A full plant can therefore reach 600 MW, comparable to a conventional 1‑gigawatt plant, but with a significantly smaller footprint. The article stresses that this modularity allows customers to start with one or two modules and add more as demand grows, effectively turning the plant into a “pay‑as‑you‑grow” investment.

Economies of Scale:
Because of factory‑based production and standardized designs, NuScale estimates a 30–40 % cost advantage over traditional reactors. The firm’s own cost model, based on a 10‑year build‑out period, projects a Levelized Cost of Electricity (LCOE) of roughly $50/MWh—well below current utility‑scale coal and gas plants.

3. Market Landscape & Competition

The article positions NuScale at the center of a competitive SMR ecosystem that also includes GE Hitachi, TerraPower, and China National Nuclear Corporation (CNNC). While GE Hitachi is pursuing a 1.8‑GW design, NuScale’s 50‑MW modules offer a lower entry point for utilities, governments, and industrial customers that cannot afford a 1‑GW plant.

The piece highlights recent U.S. policy signals:
DOE’s $400 million grant for pilot SMR projects, including a 2025 collaboration with the U.S. Army Corps of Engineers to build a 50‑MW site at a decommissioned power plant.
NRC’s “SMR 2025” licensing roadmap that anticipates the first commercial approval by 2027.

Additionally, the article notes that international markets—especially in Japan, India, and Canada—have shown growing interest in SMRs, creating a global export pipeline that could further diversify NuScale’s revenue streams.

4. Regulatory Milestones & Risks

Regulatory Wins:
The centerpiece of the article is NuScale’s first full NRC approval, granted in late 2024 for a “pilot plant” at the former X site. The NRC’s decision was praised as a “benchmark for the entire SMR industry.” The author cites the 90‑day “safety review” that was completed ahead of schedule as evidence of the company’s robust engineering and transparent regulatory strategy.

Uncertainties:
However, the article also cautions that regulatory approval is only the beginning. Potential delays include:
Public‑acceptance hurdles—even with passive safety, nuclear projects often face local opposition.
Supply‑chain constraints—critical components such as advanced cooling pumps and high‑purity fuel are still in short supply.
* Capital‑intensive construction—even with modular benefits, the upfront capital required for a 600‑MW plant can be in the billions.

The article suggests that while NuScale has positioned itself well, the company’s success is still contingent on a smoother than usual financing environment.

5. Financial Snapshot & Investor Takeaway

Revenue Drivers:
NuScale’s business model is layered:
1. Design & licensing fees from utilities and governments.
2. Construction contracts that will become the company’s main revenue engine once the first plant is built.
3. Fuel supply agreements—the firm is partnering with X fuel manufacturers to lock in lower costs for its reactors.

Valuation View:
The article reports that NuScale’s stock is trading around $9.50 per share, with a trailing P/E of about 25x—higher than the traditional nuclear‑energy peers but justified by the company’s first‑mover advantage. The Motley Fool authors suggest a “price target of $12–$15” based on projected contract wins and an anticipated 5–7 % CAGR in revenue through 2030.

Risk‑Reward Balance:
On the upside, the article points to a “potentially massive upside” if NuScale secures the first commercial contract by 2028, projecting that each 600‑MW plant could generate $1 billion in annual revenue. On the downside, the authors warn that a single regulatory setback could derail the entire timeline, and the capital‑intensive nature of nuclear projects might depress cash flows in the early years.

6. The Bottom Line: Is NuScale a “Millionaire Maker”?

The Motley Fool’s editorial conclusion is cautiously optimistic. The article argues that while the SMR market is still embryonic, NuScale’s unique technology, early regulatory approvals, and a favorable policy environment position the company as a “potential game‑changer.”

For investors, the key question is not whether the nuclear renaissance will happen, but whether NuScale can execute on its promises and manage the capital intensity and regulatory complexity that come with it. The piece recommends a “wait‑and‑see” approach for conservative investors, while suggesting that those with a higher risk tolerance could consider a modest position in the stock as the company moves toward its first commercial plant.

7. Follow‑Up Links and Context

The article contains several hyperlinks that add depth to the narrative:

• NRC Licensing Overview – a link to the NRC’s official page explaining the SMR licensing process, providing useful timelines and regulatory requirements.
• DOE SMR Program – a government site detailing the $400 million grant and the selection criteria for pilot projects.
• NuScale’s Q2 2025 Earnings Release – offers a real‑time look at the company’s financial performance, underscoring the revenue figures cited in the article.
• Industry Analysis by International Energy Agency (IEA) – provides broader context on SMR adoption trends worldwide.

These links collectively support the article’s narrative that NuScale is at the nexus of technology, policy, and market demand—an intersection that could generate substantial returns for early backers.

8. Final Thoughts

In all, the article paints a picture of NuScale Power as a promising, albeit speculative, investment in a market that could reshape the global energy mix. Its emphasis on safety, modularity, and early regulatory approvals positions the company as a potential “next‑big thing” in nuclear energy. Investors who are comfortable with high volatility, long construction timelines, and regulatory uncertainty might find NuScale’s story compelling. Those who prefer immediate cash flows or a more mature industry may wish to wait until the company’s first commercial plant goes online before committing.

The Motley Fool’s recommendation is, therefore, a balanced stance: keep an eye on NuScale, but enter only after the company demonstrates the ability to convert its contracts into a functioning plant—and after the regulatory and financing hurdles have been overcome.