Is it worth considering a purchase of NuScale Power stocks when their price falls below $45?
In the world of nuclear energy, NuScale Power is making significant strides, with its shares trading near all-time highs, reflecting investors' optimism about the company's prospects. One of the key drivers behind this optimism is the RoPower Nuclear project in Romania, where NuScale Power is providing reactors, marking a significant milestone in the company's history as one of the first major SMR deployments.
The RoPower project, with a total installed capacity of 462 MW, is a significant undertaking for NuScale Power. The company has pre-ordered parts for six SMRs needed for the project, a clear sign of its commitment to the venture. However, specific details about the sale's status, such as timelines or financial agreements, are not publicly disclosed.
The revenue of NuScale Power is closely tied to the outcome of the RoPower project, as the company is conducting final studies before making a go/no go decision, expected in the first half of 2026. The success of the RoPower project will greatly impact NuScale Power's status as a potential buy at its current $45 stock price.
In the first quarter of 2025, NuScale Power generated $13.4 million in revenue, primarily from consulting services for RoPower. This represents a significant increase from the same quarter the previous year, when the company generated just $1.4 million. The company also ordered parts for six additional reactors, further demonstrating its commitment to the SMR market.
NuScale Power, a nuclear power company specialising in small modular nuclear reactors (SMRs), believes that these reactors offer several advantages over large, site-built nuclear reactors. SMRs are expected to be less costly, easier to transport, located near population centres, and safer to operate.
While the RoPower project holds great promise, most investors might be better off waiting until there's more clarity on the first SMR sale. If the RoPower sale falls through, the stock price might fall significantly. However, assuming the opportunity for SMRs is as big as it seems, holding off until NuScale Power has sold its first SMR may still leave investors with a huge long-term opportunity.
In May 2025, NuScale Power achieved a major milestone by becoming the first company to receive U.S. Nuclear Regulatory Commission approval for a commercially deployable SMR design, which supports its growth and partnerships in the nuclear energy sector. The extra cash from the recent stock sales should help NuScale Power survive until its first official customer is lined up.
In conclusion, the RoPower Nuclear project is a significant milestone for NuScale Power, with potential implications for the company's future. As the first potential customer for NuScale Power's SMRs, the success of the RoPower project will play a crucial role in shaping the company's trajectory in the nuclear energy sector.
The financial success of the RoPower project is closely tied to NuScale Power's revenue and stock price, as the company's commitment to the venture is evident in the pre-ordered parts for six SMRs and additional reactors. Investors may find it prudent to consider the specific details about the sale's timelines and financial agreements before making decisions, as the outcome will greatly impact NuScale Power's status as a potential buy. In the meantime, technology advancements in small modular nuclear reactors (SMRs), such as those offered by NuScale Power, hold the potential for significant cost savings, easier transportation, safer operations, and profitable long-term investments.
