NuScale Power Is Down 84% From Its 52-Week High. Is It Finally Time to Buy the Dip in the Nuclear Start-Up?
2026-07-14 18:21
•Courtney Carlsen •The Motley Fool
•••• ••••••• Axe Capital view
NuScale Power Implodes: Is It Worth a Look from SA?
NuScale’s shares are crushed, but the nuclear energy theme has a complicated local reflection.
NuScale Power’s 84% drop signals serious challenges. Regulatory head starts for rivals have eroded their unique advantage, and only one firm project in Romania feels light for the hype. Yet interest from big tech like Microsoft and Meta in nuclear for AI data centers points to growing demand for clean, steady power. South Africa’s energy market is a mixed bag—nuclear plans are on the back burner while coal and renewables dominate. Still, if the global SMR (small modular reactor) market takes off, it might eventually spur local policy or provide export opportunities for companies with nuclear exposure. For now, local investors are better off watching how USD/ZAR reacts to energy shifts globally rather than jumping into a US nuclear start-up with no SA footprint. The big risk? If South Africa commits seriously to nuclear, there could be a late surge in demand for tech or materials associated with reactors. this is just my opinion and not financial advice
Avoid buying NuScale shares directly. Instead, keep an eye on USD/ZAR as a proxy for energy commodity and geopolitical risks linked to nuclear demand. Consider exposure to prospected SA energy stocks if policy changes.
- USD/ZAR
- NuScale Power (if accessible)
- NuScale failing to secure major new projects beyond Romania
- South African government’s slow or uncertain nuclear policy
5/10
NuScale Power's stock has plummeted 84% from its $57.42 peak, driven by accelerated regulatory approvals for competitors that have eroded its first-mover advantage. While the company benefits from growing AI data center demand for nuclear power and has secured a Romania project, it lacks firm commitments beyond that deal. The stock presents a high-risk opportunity for investors betting on a TVA deal and SMR market growth.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Courtney Carlsen
Categories: Technology, AI, Semiconductors, Equities
Tickers: SMR, MSFT, META, GOOG, GOOGL, GOOGM, GOOGN
Sentiment: Positive - While NuScale holds a unique regulatory approval and benefits from nuclear energy tailwinds, its competitive advantage has been significantly eroded by accelerated regulatory timelines for competitors. The company has only one secured project (Romania) and lacks firm commitments beyond that, making it a high-risk investment despite the attractive valuation. Mentioned as one of the major hyperscalers (alongside Meta and Alphabet) that has inked deals for nuclear power to support AI data center expansion, indicating strong demand for nuclear energy solutions.
Keywords: small modular reactors (SMR), nuclear energy, AI data centers, regulatory approval, NuScale Power, stock decline, competitive advantage
Insights:
- SMR: Neutral: While NuScale holds a unique regulatory approval and benefits from nuclear energy tailwinds, its competitive advantage has been significantly eroded by accelerated regulatory timelines for competitors. The company has only one secured project (Romania) and lacks firm commitments beyond that, making it a high-risk investment despite the attractive valuation.
- MSFT: Positive: Mentioned as one of the major hyperscalers (alongside Meta and Alphabet) that has inked deals for nuclear power to support AI data center expansion, indicating strong demand for nuclear energy solutions.
- META: Positive: Identified as a hyperscaler that has signed deals for nuclear power to support AI data center operations, demonstrating corporate commitment to nuclear energy for reliable baseload power.