Shares of NuScale Power Corporation (NYSE: SMR), a developer of small modular nuclear reactor (SMR) technology, have experienced a significant decline in value. This drop follows the November 2023 termination of its flagship Carbon Free Power Project (CFPP) in Utah, a partnership with the Utah Associated Municipal Power Systems (UAMPS). The project was canceled after failing to secure enough subscriptions from member utilities.
Despite the setback, NuScale continues to advance its technology. In January 2024, the U.S. Nuclear Regulatory Commission (NRC) issued a standard design approval for an updated version of its VOYGR SMR power plant. The company is also pursuing international projects and partnerships, including agreements in Poland and Romania.
Financial analysts remain divided on the stock's outlook. Some see the current low share price as a potential buying opportunity, citing the company's first-mover advantage in the U.S. SMR market and its ongoing regulatory progress. Others caution about the high costs, long development timelines, and significant execution risks inherent in first-of-a-kind nuclear projects, which continue to challenge the company's path to profitability.
