Should You Buy, Sell, or Hold NuScale Power Stock Before Q2 Earnings?

Core Viewpoint - NuScale Power is set to report its second-quarter 2025 results, with expectations of significant revenue growth and a widening loss per share compared to the previous year [1][3]. Financial Performance - The Zacks Consensus Estimate for second-quarter revenues is $9.07 million, reflecting an 834.54% increase from the same quarter last year [1]. - The estimated loss for the second quarter is 12 cents per share, which has widened by a penny over the past month, indicating a year-over-year increase of 61.29% [1]. Market Position and Demand - NuScale Power's performance is likely to benefit from strong electricity demand driven by AI-powered data centers and the global shift towards clean energy solutions [3]. - The company is focusing on strategic initiatives to align resources for commercialization and securing revenue-generating contracts [3]. Technological Advancements - Significant progress has been made in the manufacturing and commercialization of Small Modular Reactor (SMR) technology, with key partnerships established with Doosan Interability and ENTRA1 Energy [4]. - The collaboration with ENTRA1 Energy is designed to mitigate risks and align with customer requirements, which are crucial for the success of SMR deployment [5]. Stock Performance - NuScale Power shares have increased by 142% year-to-date, outperforming the Zacks Computer & Technology sector's return of 9.2% and the Zacks Electronics-Power Generation industry's rise of 140.1% [6]. - The company's shares have also outperformed its closest peer, BWX Technologies, which has returned 28.8% in the same period [6]. Industry Trends - The demand for energy is expected to rise significantly, particularly from data centers, which are projected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028 [15]. - Major technology companies like Meta Platforms, Microsoft, Alphabet, and Oracle are increasingly committing to nuclear energy, including SMR technology, to meet sustainability goals [16][17]. Competitive Landscape - Despite advancements, NuScale Power faces stiff competition from companies like Oklo and BWX Technologies in the SMR sector [18]. - Oklo has recently signed a memorandum of understanding with Korea Hydro & Nuclear Power to advance its nuclear technology, with its shares surging 260% year-to-date [19]. Conclusion - NuScale Power's advancements in SMR technology and partnerships position it as a key player in sustainable energy, but challenges remain in a competitive market and concerns over valuation persist [20][21].