Key Points
NuScale could benefit from the rising demand for nuclear energy for data centers and other industry operators.
The stock has fallen more than 90% from its peak one year ago on sector weakness and selling pressure from Fluor, an early investor.
A binding deal with the Tennessee Valley Authority for up to 6 GW of power could transform NuScale’s outlook.
Nuclear energy stocks are becoming closely tied to the data center build-out. Alphabet's Google recently signed a 20-year power purchase agreement with Constellation Energy, the U.S.'s largest nuclear operator, to support its growing power needs. After its Oct. 6 announcement, Constellation's stock soared 12%, and other nuclear energy stocks followed suit.
One intriguing stock in the space is NuScale Power (NYSE: SMR), an early-stage developer of small modular reactors (SMRs). As hyperscale data center operators search for dependable, carbon-free electricity, NuScale could offer investors another way to capitalize on the nuclear energy revival.
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The early-stage company trades below $6 per share and is largely story-driven, but one key catalyst could send the stock soaring.
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NuScale Power's stock has fallen drastically in 2026
NuScale's Power Modules are factory-built SMRs that are based on light-water reactor technology. Each module produces 77 MWe (megawatt-electric) of power and can be deployed in multiunit arrays to provide up to 924 MWe, enough to power 700,000 homes or heavy-duty infrastructure such as data centers or industrial plants.
The stock surged last year as data center investments ramped up and the Department of Energy took steps to boost the nuclear energy industry. As part of these efforts, the U.S. has an aggressive goal of quadrupling nuclear energy capacity by 2050 and is building traditional power plants while accelerating the development of microreactor and SMR technology.
Over the past year, the stock has plunged. After peaking at around $57 per share, NuScale is down over 90%. Several factors are driving the decline, including weakness in nuclear energy stocks, Fluor (an early investor in NuScale) exiting its stake, and a lack of further commitments for its technology.
Here's one catalyst that could send NuScale soaring
NuScale has one project in Romania, but it needs more in its pipeline to gain real traction. One deal that could send the stock soaring is with the Tennessee Valley Authority (TVA).
NuScale is working with ENTRA1 to develop power plants, and on Sept. 2, 2025, ENTRA1 signed a non-binding agreement with the TVA for up to 6 gigawatts (GW) of power across its service region. The 6 GW project would be the largest SMR deployment in the U.S. and would require deploying up to 72 NuScale Power Modules. A deal would transform NuScale's long-term outlook.
CEO John Hopkins told investors during its Aug. 5 earnings call that the company is "extremely encouraged by our conversations that ENTRA1 and TVA are having" and that "TVA is actively engaged." NuScale hopes to secure firm commitments through power purchase agreements (PPAs), which could serve as a blueprint for future deals and get U.S. plant development underway.
Until then, NuScale Power remains a risky, early-stage, story-driven stock, and its decline over the past year is a painful reminder. The stock is down 90% from its all-time high and could surge if it secures a much-coveted deal with TVA. But without a firm commitment, the stock may fall further, and investors should weigh its upside potential against the real risk of a further decline.
Courtney Carlsen has positions in Alphabet, Constellation Energy, and NuScale Power. The Motley Fool has positions in and recommends Alphabet and Constellation Energy. The Motley Fool has a disclosure policy.