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Is NuScale Power (SMR) A Bargain On Alphabet Fueled Nuclear Optimism?

Simply Wall St · 1d ago

Alphabet’s plan to buy nuclear power from Constellation has pulled fresh attention toward NuScale Power (SMR), as traders reassess small modular reactor developers alongside long term clean energy demand themes.

NuScale Power has been caught between renewed nuclear enthusiasm and company specific worries, with a 1 day share price return of 5.49% after the Alphabet news, yet a 30 day share price return down 27.05% and a 1 year total shareholder return down 87.09%. This signals fragile momentum as investors weigh long term SMR potential against funding and project delay risks.

Scan how NuScale Power compares with other nuclear energy plays by reviewing the hand picked 16 nuclear energy infrastructure stocks now drawing interest after Alphabet’s power deal headlines.

NuScale Power now trades at a steep discount to analyst targets after a brief Alphabet driven bounce, yet the business still carries heavy losses and project uncertainty. Is that gap a genuine bargain or a warning signal on valuation risk?

Most Popular Narrative: 94% Undervalued

On the most followed narrative, NuScale Power screens as heavily discounted, with a fair value of $100 against a last close of $6.15. This puts the focus on whether traders are missing something in the long buildout story.

The structural case has not moved.

AI data centers are now the fastest-growing source of electricity demand in the United States. Hyperscalers have publicly committed to carbon-neutral power. The only energy source that is simultaneously clean, always-on, and scalable to the density these facilities require is nuclear. Solar and wind cannot provide the uninterrupted baseload that computation demands. That is not a policy opinion, it is an engineering constraint.

See why 37 investors see NuScale Power as 94% undervalued.

Result: Fair Value of $100 (UNDERVALUED)

Still, the NuScale Power story carries real pressure points, including ongoing heavy losses and the risk that further project setbacks could weaken investor patience.

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

Next Steps

Mixed sentiment around NuScale Power can cut both ways, so move quickly, review the full picture, and weigh both the 1 key reward and 3 important warning signs via the 1 key reward and 3 important warning signs.

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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.