Investment firm BTIG downgraded NuScale Power’s stock rating from Buy to Neutral, citing concerns over valuation and limited visibility into the company’s order book. The move reflects growing investor unease about the trajectory of small modular reactor (SMR) development amid the broader push for clean energy solutions. While NuScale has been a leading name in the SMR space, the downgrade suggests that investors are seeking more tangible progress on project execution and revenue generation before continuing to assign premium valuations.
NuScale has been at the forefront of nuclear innovation with its compact, scalable reactor designs, receiving regulatory approval and attracting interest from utility providers and governments worldwide. However, BTIG highlighted that while the technological promise remains strong, the company’s current business development pace and lack of clear near-term orders raise questions about its ability to meet projected growth targets. Investors have been particularly focused on whether NuScale can convert expressions of interest into binding contracts, which would signal commercial readiness.
Stock performance has reflected mixed sentiments. After surging on regulatory milestones, NuScale’s shares have experienced increased volatility amid investor doubts over commercial deployment timelines. The company has announced several potential projects, including international partnerships and government-supported initiatives, but details on financial commitments, construction schedules, and long-term revenue streams remain limited. This lack of clarity appears to be driving the reassessment of its near-term valuation potential.
Another issue affecting sentiment is the overall cost structure of SMRs. While theoretically cheaper and faster to deploy than traditional nuclear reactors, SMRs still face significant upfront capital requirements and regulatory hurdles. Questions remain about scalability, long-term safety, and public acceptance, especially in countries where nuclear energy remains politically sensitive. These uncertainties have led some analysts to adopt a wait-and-see approach, preferring to see proven deployment before endorsing further investment.
NuScale continues to signal confidence in its strategy, maintaining that its pipeline of projects will materialize as global demand for clean energy intensifies. The company points to growing interest in carbon-free baseload power as a key driver for nuclear investment, especially in regions seeking to transition away from coal or natural gas. However, actual construction timelines and operational success stories are likely needed to bolster investor confidence.
The downgrade reflects a common dynamic in early-stage technology sectors—strong conceptual promise met with challenges in execution and timing. NuScale’s long-term prospects remain intact, particularly if geopolitical and environmental factors accelerate demand for clean energy. However, investor patience may be tested unless the company demonstrates near-term wins that validate its market positioning. Until then, cautious optimism may define market sentiment around NuScale and the broader SMR space.