Should I Buy NuScale Power (SMR)? Finance YouTuber Analysis

The YouTuber identifies New Scale (SMR) as a potential buy for a watch list, noting its unique position as the only company with US Nuclear Regulatory Commission design certification for small reactors, giving it a significant competitive advantage. Despite a large shareholder selling off a stake, which caused a price drop, the YouTuber sees this as a positive as it clears selling pressure. They observe increasing volume on recent recoveries, suggesting accumulation, but advise waiting for a clearer upward trend as it is still gently trending down.

“It's still trending down gently. So, it's still a little early, but it's definitely one for my watch list, which is where it sits right now.”

Despite an active securities fraud class action suit, the YouTuber suggests NuScale is worth watching. If its integrated 77 MW design achieves NRC certification around the time the lawsuit settles, it could significantly change the small modular reactor (SMR) landscape and lift the stock.

“I think that NuScale is still worth putting on your watch list, because if their integrated 77 MW design hits NRC certification around the same time that the lawsuit settles, then the SMR, or small modular reactor, completely changes the playbook.”

The YouTuber considers NuScale Power a high-risk, high-reward innovation play, being the first and only SMR design fully approved by the US NRC, creating a significant regulatory moat. Their modular reactors can be factory-produced and installed quickly, with their first project, Voyager, under development and other deployments explored.

“In 2023 they became the first and only SMR design fully approved by the US Nuclear Regulatory Commission. Now of all the modes that is a massive regulatory moat.”

The YouTuber avoids NuScale Power, categorizing it as a speculative company with a nearly $6 billion market cap but no real revenue and significant losses. He emphasizes that as an energy business, it needs to demonstrate a solid return on invested capital, which it currently does not.

“Again, a speculative company that I'm not interested in buying until it proves it is able to make a solid return on invested capital.”