SMR Stock Soars 93% in a Month: What Should Investors Do Now?

Core Viewpoint - NuScale Power has experienced a significant stock price increase of 92.8% over the past month, outperforming both the Zacks Computer and Technology sector and the Zacks Electronics - Power Generation industry [1] Financial Performance - In Q1 2025, NuScale reported total revenues of $13.4 million, a substantial increase from $1.4 million year over year, driven by the Front-End Engineering and Design (FEED) Phase 2 project and a Technology License Agreement for Romania's RoPower Doicesti power plant [2] - The company has a strong liquidity position with $521.4 million in cash, cash equivalents, and short-term investments, ensuring financial support for project execution and operational stability [3] Strategic Partnerships - NuScale's strategic collaborations are crucial for its global expansion and the advancement of its Small Modular Reactor (SMR) technology, with an exclusive partnership with Energy ENTRA1 supporting a project pipeline of over 30 gigawatts across various sectors [4] - The partnership with RoPower Nuclear in Romania has reached a milestone, with the 462 MWe SMR project now in the FEED Phase 2, supported by Fluor Corporation and Doosan Enerbility [5] Regulatory and Market Position - NuScale is on track for a 2030 deployment, with U.S. Nuclear Regulatory Commission approval expected by July 2025 for its 77 MWe module, reinforcing its first-mover advantage in the commercial SMR market [6] - The company is strengthening its supply chain through key agreements with Doosan, Framatome, and Paragon, addressing critical path items and short-term investment plans [6] Challenges and Market Interest - NuScale has not yet secured its first firm customer order, pushing expectations for revenue generation to late 2025, which raises concerns about cash flow and financial stability [7] - Despite these challenges, there is increasing interest in SMR technology from major tech companies like Meta Platforms, Microsoft, Alphabet, and Oracle, who are exploring nuclear options to meet the energy demands of AI-driven data centers [8] - The company faces challenges from a tight nuclear supply chain, which may hinder production ramp-up and lead to delays and higher costs, complicating its 2030 deployment goal [9] Earnings Estimates - For 2025, the Zacks Consensus Estimate for loss is pegged at 41 cents per share, unchanged over the past 30 days, marking a decline from the year-ago quarter's reported earnings of 42 cents [11]