NuScale Power (SMR +5.77%) is a nuclear technology company making small modular reactors (SMRs) — essentially mini nuclear power plants. NuScale is currently the only SMR developer with a design approved by the U.S. Nuclear Regulatory Commission (NRC), a huge advantage. Yet, when you look at its stock over the last six months, it doesn’t look like a company with a first-mover advantage.

Down almost 70% over the last half-year, NuScale carries a market cap of about $4 billion, or roughly a third that of Oklo (OKLO +6.94%), another microreactor developer that doesn’t have NRC approval yet.

The six-month sell-off has made NuScale’s valuation slightly more attractive, but the cases for and against this nuclear energy stock haven’t changed much. For those considering NuScale’s long-term value, here’s what you should know.

The case for NuScale: A familiar design in a heavily regulated industry

Again, NuScale’s biggest advantage right now is regulatory. The NRC approved its 77-megawatt SMR design (NuScale Power Module) in May 2025, following an earlier 50 MW approval. That means NuScale is the only U.S. company that can legally deploy an SMR plant today — that is, if it had a customer who wanted one.

One reason NuScale moved so quickly through the NRC timeline is that its design is built around a familiar light-water reactor technology. Water cools the reactor and helps moderate the nuclear reaction, just as it does in roughly 96% of nuclear reactors operating today. NuScale’s modules may be much smaller than a traditional power plant, but the basic technology is something regulators already know.

Image source: Getty Images.

That is different, than, say, Oklo. In contrast to NuScale’s water-cooled reactors, Oklo is cooling its microreactors with liquid sodium — a technology that has not been tested commercially in the U.S. That novelty is partly why Oklo hasn’t achieved full NRC approval.

The case against NuScale: Where’s the power?

Again, NuScale isn’t trying to reinvent the nuclear reactor. It’s just trying to make it smaller. That, in theory, should attract customers. But NuScale has yet to generate revenue from an SMR sale.

I think that part of that hesitation comes down to cost. Just look at NuScale’s planned SMR project in Romania. The plant is expected to use six NuScale modules to generate about 460 megawatts of power, but the estimated price tag could reach roughly $7 billion. That’s a lot of money for a technology whose main promise is to make nuclear energy simpler and easier to deploy.

Let’s also not forget that NuScale’s first planned project — the Carbon Free Power Project (CFPP) — was canceled due to rising costs. Investors who are thinking about NuScale should keep this in mind: NuScale may be a first-mover now, but if it can’t ink big deals soon, other nuclear technology companies could start conquering its potential market.

As such, I would treat NuScale as a speculative play on nuclear energy. It could be a major player in the SMR space, or it could be pushed out by those with truly novel cooling technologies, like Oklo.