NuScale Power Stock Plummets 31% Last Month: What’s Behind the Nuclear Nosedive?

Nuclear energy darling NuScale Power just took a reactor-grade hit—shares cratered 31% in a single month, leaving investors scrambling for radiation shielding.

The Regulatory Fallout

Regulatory headwinds slammed the small modular reactor specialist, with permitting delays and compliance costs creating chain reaction selloffs. Wall Street analysts pointed to shifting energy policies creating uncertainty around next-gen nuclear deployments.

Market Meltdown Mechanics

Institutional investors dumped positions as project timelines stretched—because nothing makes hedge funds flee faster than delayed revenue projections. Retail traders followed suit in classic panic-selling fashion, amplifying the downward spiral.

Industry Domino Effect

The selloff contaminated broader nuclear sector ETFs, proving once again that Wall Street treats innovative energy stocks like speculative tech plays—all hype until the first regulatory hiccup.

Nuclear still faces its oldest enemy: bureaucracy moves slower than radioactive decay. Maybe they should've tokenized the reactor on blockchain instead.

It's been a roller-coaster ride for nuclear start-ups

Nuclear energy stocks soared at the beginning of this summer, with the current presidential administration's push to accelerate the development of nuclear energy to keep up with data center demand around artificial intelligence (AI). President TRUMP signed an executive order for advanced nuclear reactor technologies, of which NuScale Power is one.

In fact, NuScale Power is the only SMR company to have its design approved by the Nuclear Regulatory Commission (NRC), which could give it a head start in winning customer contracts. However, it has failed so far to win any customer contracts outside prospective contracting from a Romanian power company that's exploring whether to use SMRs for its upcoming energy needs.

With close to zero revenue and a history of burning cash, NuScale Power is a stock that trades with a TON of volatility. As the air comes out of the post-executive order excitement, it is no surprise to see NuScale Power stock hit a bit of a rough patch. The company has no fundamental basis to anchor its $11.5 billion market cap, which makes it a risky stock to invest in.

Image source: Getty Images.

NuScale Power's uncertain future

NuScale Power has a few energy projects in the works that it could potentially win deals on, including a recent proposal from the Tennessee Valley Authority. Bringing these to fruition could help it actually develop an SMR to be deployed in the real world instead of talking about it, which has been all the company has done since its inception.

Even if these projects get approved, NuScale Power won't generate much in revenue to warrant its $11.5 billion market cap, with revenue not showing up for years due to the long project life for nuclear energy developments. It is foolish to buy a stock valued at over $10 billion that's generating zero revenue. Therefore, investors should avoid putting NuScale Power in their portfolios, given its uncertain future.