Core Insights - NuScale Power is experiencing increased demand due to the rise of AI-driven data centers, which require reliable and continuous power supply [1][5] - The company believes its small modular reactors (SMRs) can meet this demand effectively, particularly in behind-the-meter power solutions [2][11] - NuScale Power's commercial plans are supported by agreements with ENTRA1 and the Tennessee Valley Authority (TVA) to deploy up to 6 gigawatts (GW) of nuclear capacity [3][11] - The U.S.-Japan framework aims to mobilize up to $550 billion in investments to enhance energy infrastructure, with NuScale Power and ENTRA1 being key players in this initiative [4][11] Demand and Market Position - The demand for power from data centers remains robust, and NuScale Power's future growth hinges on securing binding power purchase agreements and advancing project timelines [5][11] - The company faces significant competition in the nuclear energy sector from firms like Oklo and Constellation Energy, which are also pursuing clean energy solutions for data centers [6][7][8] Financial Performance - NuScale Power's stock has declined by 55.6% over the past six months, compared to a 52.4% decline in the Zacks Electronics - Power Generation industry [9] - The company's shares are currently trading at a trailing 12-month Price/Book ratio of 13.86, which is higher than the industry average of 13.21 [13] - The Zacks Consensus Estimate for 2026 indicates a projected loss of 62 cents per share, an improvement from a previous estimate of a 67 cents loss [16][17]

Core Viewpoint - Amentum has been selected as the program delivery partner for the first deployments of Rolls-Royce Small Modular Reactor (SMR), which aims to provide up to 1.5GW of low-carbon energy in the UK, supporting net zero goals and creating over 8,000 long-term jobs [1][4]. Group 1: Partnership and Responsibilities - Amentum will serve as the program delivery partner responsible for integration, oversight, governance, construction management, and execution of SMR deployment [2][3]. - The collaboration between Amentum and Rolls-Royce SMR is expected to enhance energy security in the UK and continental Europe, leveraging Amentum's expertise in complex energy infrastructure [4][5]. Group 2: Project Execution and Impact - Amentum will utilize its nuclear life cycle experience to ensure the on-time and on-budget delivery of SMR-generated power in the UK and Czech Republic [3][4]. - The partnership is anticipated to significantly advance the deployment plans for Rolls-Royce SMRs, contributing to the growth of the energy sector and job creation in the UK over the next four years [4][5]. Group 3: Industry Context and Future Outlook - With global electricity demand projected to double in the coming decades, Rolls-Royce SMR represents a new approach to nuclear energy, featuring smaller, scalable, factory-built power plants [4]. - Amentum's extensive experience and robust supplier network are positioned to meet growing energy requirements and drive long-term industrial growth [4][5].

Industry Overview - Nuclear energy is experiencing a resurgence as a cleaner and more scalable energy source, driven by the increasing demand for energy from AI data centers [1] - The interest in nuclear power is particularly focused on smaller-scale nuclear reactors, known as small modular reactors (SMRs) [1] Company Comparison - NuScale Power and Nano Nuclear Energy are both involved in the SMR business, with NuScale focusing on permanently installed SMRs and Nano specializing in microreactors [3] - Investors are currently valuing both companies based on their future potential rather than current results, with Nano being perceived as the "smaller" company [4] Market Capitalization and Potential - NuScale has a market cap of approximately $6 billion, while Nano's market cap is around $1.75 billion, suggesting that Nano may have greater long-term upside potential, though this could also indicate greater uncertainty about its future success [5] - NuScale has already received regulatory approval for its reactors and is in the commercialization stage, with last year's revenue reported at $40 million and expectations for sales to triple this year [7]

Core Insights - X-energy Reactor Company and SGL Carbon have entered into a 10-year graphite supply agreement for X-energy's Xe-100 small modular reactor, with an initial three-year contract valued at over $100 million [1][2] - The agreement aims to enhance X-energy's supply chain for its 11 GW commercial pipeline, supporting the production readiness for future projects [1][4] Company Overview - X-energy is a leading developer of advanced small modular nuclear reactors and fuel technology, focusing on clean energy generation and redefining the nuclear energy industry with safer and more efficient designs [5] - SGL Carbon is a world leader in carbon-based solutions, generating sales of 1.0 billion euros in 2024 and employing approximately 4,400 people across 29 locations [6] Partnership Details - Under the initial contract, SGL has begun producing graphite components using NBG-18 medium-grain isotropic graphite for the Xe-100 reactor, which is part of a four-unit plant in Texas [2][3] - The long-term framework includes reserved production capacity for the Cascade Advanced Energy Facility, a planned 12-unit Xe-100 project in Washington State [2][3] Strategic Importance - The partnership is expected to ensure supply chain continuity for safety-critical materials, supporting X-energy's growing commercial order book [2][4] - X-energy's collaboration with SGL builds on previous agreements with other industrial leaders, reinforcing a resilient U.S. and allied industrial ecosystem for advanced nuclear energy [4]

Group 1 - Investors are increasingly interested in nuclear energy stocks due to global commitments to triple nuclear energy capacity in the coming decades to meet energy demands and reduce carbon emissions [2][8] - NuScale Power is a key player in the nuclear energy sector, developing small modular reactors (SMRs) that offer scalable and lower-cost solutions compared to traditional reactors [4][8] - Fluor has been a long-term investor in NuScale and is collaborating on the development of SMR technology, specifically on a project in Romania called RoPower [5][6] Group 2 - Fluor is selling its stake in NuScale, which may exert downward pressure on NuScale's stock price, despite the stock having previously surged significantly since its public offering [7] - NuScale's stock price reached a high of $57 per share after going public at approximately $10 per share, with Fluor capitalizing on this increase by selling part of its stake for $605 million [7]

Core Viewpoint - NuScale Power experienced a significant decline in its stock price at the end of 2025 but has shown a remarkable recovery in January 2026, driven by renewed interest in nuclear energy and strategic industry developments [1][5]. Group 1: Stock Performance - NuScale Power's shares fell 61% in the last quarter of 2025, with a notable 29.2% drop in December [1]. - The stock plummeted 55% in November due to a substantial third-quarter loss, stock issues, and multiple analyst downgrades [3]. - In January 2026, the stock rebounded with a 41% increase, reflecting a positive shift in market sentiment towards nuclear energy [1][5]. Group 2: Shareholder Actions and Market Reactions - Shareholders approved a significant increase in authorized shares from 332 million to 662 million, allowing the company to raise capital through new share issuance [3]. - Fluor, NuScale's largest shareholder, announced plans to divest its entire stake by the end of Q2 2026, which raised concerns about potential share dilution among investors [4]. Group 3: Industry Developments - Meta Platforms announced nuclear energy deals for up to 6.6 gigawatts of power, indicating a growing interest in nuclear energy, although NuScale was not part of these deals [6][7]. - The scalability of NuScale's VOYGR small modular reactors (SMRs) positions them as a viable option for on-site power generation, even in challenging locations [8]. Group 4: Analyst Ratings - Bank of America analyst upgraded NuScale Power's stock rating from "underperform" to "neutral," while adjusting the price target to $28 per share, which still suggests a nearly 40% upside potential [8].

Core Viewpoint - NuScale Power's shares have significantly underperformed, losing 54.4% over the past three months, compared to a 50.6% decline in the Zacks Electronics-Power Generation industry [1][2] Company Performance - The stock has underperformed its industry competitors, with BWX Technologies gaining 2.2%, while GE Vernova and Oklo lost 3.8% and 36.4%, respectively [1] - NuScale Power's underperformance is attributed to execution risks related to its plans for establishing 6 gigawatts (GW) of nuclear capacity and competition from renewable energy sources [2][5] Expansion Plans - NuScale Power is advancing its plan to support up to 6 GW of new nuclear capacity through partnerships with ENTRA1 and the Tennessee Valley Authority (TVA), involving approximately 72 small modular reactor modules [5][6] - The first plant, utilizing 12 modules, is expected to begin delivering power around 2030 [5][8] Execution Risks - The company faces several execution risks, including the need for TVA and ENTRA1 to finalize site selection, complete engineering work, and convert the current term sheet into a binding power purchase agreement (PPA) [6][8] - Discussions are ongoing, but no firm contract has been signed yet, and delays in PPA negotiations could impact revenue timelines [8][9] Competitive Landscape - NuScale Power faces stiff competition in the nuclear energy sector from companies like Oklo, BWX Technologies, and GE Vernova, which are also advancing their own technologies and partnerships [10][11][12] - Recent partnerships in the industry aim to enhance project delivery and supply chain capabilities, further intensifying competition [10][11][12] Financial Outlook - For 2026, the Zacks Consensus Estimate projects a loss of 52 cents per share, which has widened from a previous estimate of 51 cents [13] - NuScale Power's current valuation is significantly higher than the industry average, with a forward price-to-sales (P/S) ratio of 51.69X compared to the industry's 31.27X [16][17] Conclusion - Despite having technology advantages and long-term project announcements, the company faces challenges related to project timelines and substantial upfront investments, raising concerns about growth prospects [18][19]

Core Insights - NuScale Power has released a study indicating that its technology can provide profitable and reliable power solutions for chemical plants [1] Company Summary - The study highlights the potential of NuScale's technology in enhancing the operational efficiency of chemical plants [1]

Company Overview - NuScale Power has developed a small modular nuclear reactor (SMR) technology aimed at transforming the nuclear power industry by offering a safer and quicker construction process compared to traditional large-scale nuclear plants [1][2] - The modular design allows for easier transportation and placement closer to population centers, potentially reducing costs and construction time [2] Market Potential - SMRs could serve high-demand electricity users, such as data centers for artificial intelligence, by providing dedicated power sources and reducing reliance on the power grid [3] - The technology's appeal lies in its ability to create larger power plants by linking multiple SMRs, which may attract electric utility customers [2] Current Status - NuScale Power has not yet made its first official sale, which is critical for gaining customer confidence and demonstrating the viability of its technology [5] - The company has two potential customers: a Romanian power company considering up to six SMRs and ongoing discussions with the Tennessee Valley Authority and ENTRA1 Energy for U.S.-based projects [6][7] Financial Metrics - As of the latest data, NuScale Power's stock is trading at approximately $20.51, with a market capitalization of $5.8 billion [8] - The stock has experienced significant volatility, with a 52-week range of $11.08 to $57.42, and a gross margin of 64.95% [8][9] Investor Considerations - Fluor, an early investor in NuScale, is selling its shares and plans to exit its position by 2026, which may negatively impact the stock price in the interim [9] - The current trading price below $24 raises questions about whether it represents a buying opportunity or indicates higher risks for investors [1][10]

Core Viewpoint - A significant upgrade from Bank of America and increased options activity are positively influencing the growth narrative of nuclear power, particularly for NuScale Power, a developer of small modular reactor technology [1][3]. Company Summary - NuScale Power's stock (SMR) rose by 4.27% to close at $20.52, marking a 104% increase since its IPO in 2022 [2]. - The company has a market capitalization of $5.6 billion, with a trading volume of 51 million shares, significantly above its three-month average of 26 million shares [2]. - The gross margin for NuScale Power stands at 64.95% [2]. Industry Summary - The S&P 500 and Nasdaq Composite indices saw gains of 0.64% and 0.81%, respectively, indicating a positive market environment [4]. - Other companies in the nuclear power sector, such as GE Aerospace and BWX Technologies, also experienced stock price increases, reflecting renewed interest in small modular reactor growth prospects [5]. - The demand for nuclear power is being driven by the increasing energy needs of data centers, particularly for AI applications, positioning NuScale's SMR technology as a potential solution [6]. Investment Implications - Bank of America analysts have upgraded NuScale Power with a price target of $28 per share, suggesting a potential upside of 36.5% from the current price [6]. - High options activity has contributed to the stock's increased trading volume, although no fundamental news from the company was released [7].