NuScale Power specializes in small modular reactors (SMRs), a nuclear technology designed to meet surging electricity demand from artificial intelligence data centers. The company's stock has experienced extreme volatility, rising over 250% in four months before losing 80% of its value, leaving Wall Street analysts deeply divided on its future prospects. Yet the underlying opportunity remains significant: nuclear energy could represent a $10 trillion global market as AI reshapes global power consumption .

Why Is AI Suddenly Driving Demand for Nuclear Power?

For 15 years, from 2005 to 2020, U.S. electricity generation barely grew. Population growth had slowed, and efficiency standards improved, creating a plateau in power demand. But that changed dramatically with the rise of artificial intelligence. Data centers that train and run AI models consume enormous amounts of electricity to keep servers cool and operational .

Electricity demand is now expected to grow by around 4% annually through 2030, a sharp reversal from the previous stagnation . A huge portion of this growth comes directly from AI infrastructure. The problem: the current electricity grid simply isn't robust enough to support the massive expansion of data centers expected over the coming years. This is where nuclear energy enters the picture as a potential solution.

"Amid surging electricity demand, driven in part by the rise in AI and data centers, nuclear energy offers a potential solution. And new advancements in technology may now make the tipping point in sight for small modular reactors to reshape nuclear energy supply chains over the next decade," concluded a research report from Bank of America.

Bank of America Research Team

What Makes Small Modular Reactors Different from Traditional Nuclear Plants?

NuScale Power's entire business strategy centers on SMRs, which differ fundamentally from the massive nuclear plants that have dominated the industry for decades. According to Bank of America's analysis, SMRs offer five major advantages over conventional large-scale nuclear power plants :

• Lower Upfront Costs: Smaller reactors require less capital investment compared to building massive nuclear facilities, making them more accessible to a wider range of customers.
• Enhanced Safety Features: The smaller scale of SMRs allows for improved safety mechanisms and reduced risk profiles compared to traditional reactors.
• Modular Design: These reactors can be manufactured in factories and transported to different locations, enabling faster deployment and flexibility.
• Smaller Physical Footprint: SMRs require less land and space, making them suitable for locations where large nuclear plants cannot be built.
• Reduced Carbon Emissions: Like all nuclear power, SMRs produce electricity without greenhouse gas byproducts, supporting climate goals.

During its latest earnings call, NuScale Power's management stressed that its technology can directly "support the fast-growing energy demand for AI data centers" . The company's first plant isn't expected to begin generating power until at least 2030, meaning investors face a long wait before seeing operational results .

How Should Investors Think About NuScale Power's Extreme Stock Volatility?

NuScale Power's stock tells a story of Wall Street's struggle to value early-stage nuclear technology. In April 2025, analysts had an average 12-month price target of around $17 per share, predicting roughly 30% upside. But the stock then surged above $50 by July, representing a gain of more than 250% in less than four months. The rally proved unsustainable. Shares subsequently lost more than 80% of their value and now trade around $10 per share .

Today, analyst price targets range wildly from $11.50 to $28 per share, with an average around $18, implying potential gains of roughly 80%. This wide disagreement reflects a fundamental challenge: predicting when NuScale Power will land its next customer, what terms those deals will include, and whether the company can execute on its technology roadmap remains nearly impossible in the short term .

The company posted a net loss of around $355 million in 2025, and ongoing losses are expected to continue through at least 2030 . This means shareholders will likely experience dilution as the company raises capital to fund development. For investors unwilling to commit to a decade-long holding period, NuScale Power presents significant risks despite the compelling long-term narrative .

Steps to Understanding Long-Term Nuclear Energy Opportunities

For investors considering exposure to the nuclear-AI intersection, several factors deserve careful attention:

• Timeline Expectations: Recognize that SMR commercialization will unfold over decades, not years. NuScale Power's first operational plant won't generate revenue until 2030 at the earliest, requiring patience from shareholders.
• Technology Execution Risk: The company has faced customer cancellations and setbacks in the past. Success is not guaranteed, and technological challenges could delay or derail projects.
• Market Size Potential: The $10 trillion global nuclear opportunity is real, but SMRs will capture only a portion of that market. Even capturing a small percentage could represent hundreds of billions in value creation.
• Shareholder Dilution Impact: Expect ongoing losses and capital raises through 2030, which will dilute existing shareholders' ownership percentages before the company reaches profitability.

The nuclear renaissance driven by AI energy demands is genuine and substantial. But as Wall Street has repeatedly demonstrated, translating that opportunity into stock gains requires both conviction and patience. NuScale Power's technology aligns perfectly with the industry's future needs, yet the path from today's losses to tomorrow's profits remains long and uncertain .