Core Insights - Oklo and NuScale Power are both involved in the small modular reactor sector, but their recent quarterly results indicate they are at significantly different stages of development [1] Company Summaries - Oklo operates in the small modular reactor space and has recently reported quarterly results that suggest it is at an earlier stage compared to its competitor [1] - NuScale Power, also in the small modular reactor market, has released quarterly results that reflect a more advanced stage of development relative to Oklo [1]

Core Insights - NuScale Power is collaborating with ENTRA1 to develop up to 6 gigawatts (GW) of small modular reactor capacity for the Tennessee Valley Authority (TVA), marking the largest small modular reactor initiative in the U.S. to date, with the first plant expected to generate power by 2030 [1][10] Group 1: Project Development - The term sheet between ENTRA1 and TVA indicates progress, with ENTRA1 working on final agreements [2] - NuScale Power made a milestone payment of $128.5 million in Q3 2025 to facilitate early development tasks [2][10] - The company ended Q3 with $753.8 million in cash after raising $475.2 million through an equity program, providing financial flexibility for upcoming milestone payments [3] Group 2: Risks and Challenges - The primary risk for NuScale Power is timing, as TVA is still evaluating nuclear options and the agreement is not yet a firm order [4] - ENTRA1 must finalize its Power Purchase Agreement before construction can commence, which adds uncertainty to the timeline [4] Group 3: Competitive Landscape - NuScale Power faces significant competition in the nuclear energy sector from companies like BWX Technologies and GE Vernova [5] - GE Vernova and Samsung C&T have partnered to expedite the rollout of GE Vernova's BWRX-300 SMR outside North America [6] - BWX Technologies has signed agreements with Rolls-Royce SMR to design and supply key components for advanced reactors, enhancing its position in the SMR supply chain [7] Group 4: Financial Performance and Valuation - NuScale Power's shares have increased by 4.5% year-to-date, while the Zacks Computer and Technology Sector has grown by 25% [8] - The company trades at a forward price-to-sales ratio of 60.54X, significantly higher than the industry average of 25.29X [11] - The Zacks Consensus Estimate for 2025 indicates a projected loss of $1.64 per share, widening from a previous estimate of a loss of 50 cents [14]

Core Viewpoint - NuScale Power's shares declined by 14.7% this week, contrasting with gains in the S&P 500 and Nasdaq-100, raising concerns about the anticipated energy demand from AI data centers despite a 110% increase in stock value this year [1]. Group 1: Market Performance - NuScale Power's stock fell 14.7% while the S&P 500 and Nasdaq-100 rose by 1.9% and 2.2% respectively [1]. - The stock has seen a significant increase of 110% year-to-date, driven by the rising interest in nuclear energy stocks due to AI's energy requirements [1]. Group 2: Investor Sentiment - Recent news, including a Chinese research paper suggesting AI models can operate more efficiently, has led investors to reassess the expected energy consumption from AI [2]. - Comments from a CEO of a gas and wind turbine producer hinted at potential growth tapering, further influencing investor sentiment [2]. Group 3: Regulatory and Financial Status - NuScale is the only small modular reactor company to have received full regulatory approval from the Nuclear Regulatory Commission, unlike its competitor Oklo [4]. - Despite the promising technology, NuScale faces challenges with low revenue and high ongoing costs, leading to downgrades from analysts at two investment banks to "sell" and "underperform" [4]. Group 4: Investment Considerations - The Motley Fool Stock Advisor has not included NuScale Power in its list of top investment recommendations, suggesting that there are better opportunities available [5]. - Historical examples of successful stock recommendations highlight the potential for significant returns, contrasting with the current sentiment around NuScale [6].

Group 1 - The Russell 2000 index is experiencing significant growth, approaching new all-time highs, with the iShares Russell 2000 ETF IWM up over 25% from its lows on April 8 [1] - Small-cap companies like Oklo Inc, NuScale Power Corp, and Hims & Hers Health Inc are showing remarkable year-to-date gains of 159%, 107%, and 95% respectively, defying broader market concerns [2][3] - These companies are benefiting from strong secular trends that appear to be resistant to tariff impacts, despite the potential for increased volatility in multinational operations due to trade rhetoric [3] Group 2 - Oklo Inc has seen a year-to-date surge of over 159%, driven by investor interest in next-generation clean energy technologies, particularly small modular reactors [4] - NuScale Power has rebounded significantly, with shares doubling in 2025 on renewed interest in small modular reactors and a boost from NRC approval, despite potential tariff impacts on construction costs [5] - Hims & Hers Health Inc is capitalizing on recession fears, achieving 95% year-to-date gains through its asset-light model and strong customer retention, which have shielded it from macroeconomic shocks [6] Group 3 - The performance of these small-cap companies indicates that certain segments of the market are thriving, even as larger companies face challenges from macroeconomic headlines and tariff concerns [7]

Core Insights - NuScale Power Corporation has seen a significant stock increase of 162% over the past year, attributed to a growing interest in nuclear energy and supportive government policies [1][3] - The U.S. government aims to increase nuclear power generation from 100 gigawatts to over 400 gigawatts by 2050, which could require substantial investments in new facilities [3][4] - Despite the positive market sentiment, NuScale has yet to secure customers for its small modular reactors, raising concerns about its future profitability [6][9] Company Overview - NuScale Power has a market capitalization exceeding $10 billion and is the only company with a small modular reactor design approved by the Nuclear Regulatory Commission (NRC) [1][4] - The company has received $600 million in funding from the Department of Energy but struggles to make its products economically viable compared to other energy sources [7][8] - Currently, NuScale generates only $49 million in annual revenue, primarily from project studies and grants, indicating it is pre-revenue until it secures customer orders [9] Market Position and Challenges - The company faces significant challenges in executing its technology claims, with no current customers for its modular reactors and previous projects canceled due to lack of demand and cost overruns [6][8] - NuScale's cash burn rate is $98 million per year, which has been mitigated by internal cost cuts, but this may hinder development progress [9] - The stock is trading at a high valuation with a price-to-sales ratio of 77, which is considered expensive given the capital-intensive nature of the nuclear energy sector [13] Future Outlook - Predictions indicate that NuScale Power stock may struggle in the coming years, with potential negative share-price performance that could disappoint investors [12][14] - The company is years away from completing any projects, and even if it secures a customer, the timeline for project completion will prolong cash losses [12]