NuScale Power’s Valuation After Nvidia’s Nuclear Endorsement and Fresh AI-Driven Interest

Nvidia CEO Jensen Huang just put nuclear power, and especially small modular reactors, squarely into the AI spotlight, and that has pushed NuScale Power NYSE:SMR back onto many investors watchlists.

See our latest analysis for NuScale Power.

That AI spotlight has arrived just as NuScale’s share price has whipsawed, with a recent 7 day share price return of 14.01 percent coming after a sharp 30 day share price decline of 28.94 percent and a still impressive 3 year total shareholder return of 108.51 percent. This hints that long term believers have been rewarded even as short term momentum remains volatile.

If this surge of interest in nuclear for AI has you rethinking your energy and tech exposure, it could be a good time to explore high growth tech and AI stocks for other potential opportunities.

With NuScale still loss making but growing revenue fast, and trading at a steep discount to analyst targets after a volatile run, is this renewed AI driven nuclear hype a genuine buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 43.8% Undervalued

With NuScale last closing at $21.56 against a narrative fair value near $38.35, the story leans toward substantial upside if assumptions hold.

With an NRC approved SMR technology and the commitment of over $2 billion towards its development and licensing, NuScale is uniquely positioned for immediate commercial deployment compared to competitors focused solely on demonstration plans. This potentially accelerates revenue growth once commercial operations commence.

Read the complete narrative.

Want to see what kind of revenue surge and margin shift would need to unfold to justify this premium valuation vision? The full narrative unpacks aggressive growth trajectories, profit normalization, and a future earnings multiple more often associated with market darlings than pre profit industrial names.

Result: Fair Value of $38.35 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, delays in securing firm utility orders and potential ENTRA1 funding obligations could force dilutive capital raises, which would undermine the upside implied by today’s valuation.

Find out about the key risks to this NuScale Power narrative.

Another Angle on Valuation

While the narrative model points to upside, our SWS DCF model tells a very different story, with an estimated fair value of around $3.14 per share, implying that NuScale trades at a steep premium. Is the market already paying up for years of hoped for execution?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own NuScale Power Narrative

If you see the story differently or want to dig into the numbers yourself, you can quickly build a personalized view in just a few minutes, Do it your way.

A great starting point for your NuScale Power research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.