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Should You Buy, Sell, or Hold NuScale Power Stock Before Q2 Earnings?

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Key Takeaways

  • {\"0\":\"SMR\'s Q2 may reflect strong demand from AI-powered data centers and clean energy trends.\",\"1\":\"NuScale Power advances SMR tech with partners like Doosan and ENTRA1 to boost commercialization.\",\"2\":\"Despite momentum, SMR faces steep competition and concerns over its elevated valuation.\"}

NuScale Power (SMR - Free Report) is scheduled to release second-quarter 2025 results on Aug. 7.

The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $9.07 million, indicating an 834.54% increase from the year-ago quarter’s levels. 

For the second quarter of 2025, the Zacks Consensus Estimate for a loss is pegged at 12 cents per share, which has widened by a penny over the past 30 days, indicating a year-over-year increase of 61.29%.

Let us see how things have shaped up for the upcoming announcement.

NuScale Power Corporation Price and EPS Surprise

NuScale Power Corporation Price and EPS Surprise

NuScale Power Corporation price-eps-surprise | NuScale Power Corporation Quote

Key Factors to Consider for NuScale Power

NuScale Power’s second-quarter performance is likely to have benefited from strong demand for electricity supporting AI-driven data centers and the global push toward clean energy solutions.

SMR remains focused on a series of strategic initiatives aimed at aligning internal resources with its primary objective of moving toward commercialization and securing revenue-generating contracts.

NuScale Power has made significant strides in the manufacturing and commercialization of its Small Modular Reactor (SMR - Free Report) technology, including progress with key partners such as Doosan Interability and ENTRA1 Energy, which is expected to further solidify its position in the market.

NuScale Power’s collaboration with ENTRA1 Energy continues to gain momentum. The partnership’s commercial structure is designed to mitigate risks and align with customer requirements around scalability, availability, and reliability. These key factors remain central to SMR deployment success in the to-be-reported quarter.

SMR Shares Outperform Sector, Industry

NuScale Power shares have surged 142% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s return of 9.2% and the Zacks Electronics- Power Generation industry’s rise of 140.1%.

The company’s shares have also outperformed its closest peer, which includes BWX Technologies (BWXT - Free Report) . In the year-to-date period, BWX Technologies shares have returned 28.8%.

SMR Stock's Performance

Zacks Investment Research
Image Source: Zacks Investment Research

SMR Stock is Overvalued

NuScale Power shares are currently overvalued, as suggested by its Value Score of F.

In terms of the forward 12-month price/sales (P/S), SMR is trading at 106.79X, significantly higher than the Zacks Computer and Technology sector’s 6.56X and BWX Technologies’ 4.40X.

SMR Valuation

Zacks Investment Research
Image Source: Zacks Investment Research

SMR Benefits From Growing Data Center Needs

NuScale Power is gaining strong momentum across various sectors, particularly as energy demand continues to rise. The increasing energy demand, driven by sectors like data centers, which require continuous, reliable, and carbon-free energy, has been a major growth driver.

Data centers are expected to triple their energy use over the next three years, accounting for 12% of U.S. electricity consumption by 2028. This growth trend presents a significant opportunity for NuScale Power, as its SMR technology offers consistent, carbon-free energy that can meet the increasing demands of hyperscale data centers.

SMR Benefits From Tech Giants’ Commitment to Nuclear Energy

NuScale Power continues to attract strong interest from major technology companies and infrastructure capital. Companies like Meta Platforms, Microsoft, Alphabet, and Oracle (ORCL - Free Report) have made substantial commitments to using nuclear energy, including SMR technology, to meet their sustainability goals, which positively impacts NuScale Power’s market positioning.

Companies like Google and Oracle are also showing interest in using SMR technology for large-scale data centers, reinforcing the growing trend toward nuclear solutions for energy-intensive tech operations. 

As Alphabet, META Platforms, Microsoft, and Oracle align their energy strategies with sustainable nuclear options, the demand for SMR technology continues to gain momentum, positioning NuScale Power at the forefront of this emerging energy market.

SMR Suffers From Stiff Competition

Despite NuScale Power’s advancements in SMR technology and expanding partner base, the company is facing stiff competition in the SMR sector of the nuclear energy industry from companies like Oklo (OKLO - Free Report) and BWX Technologies.

In May 2025, OKLO signed a memorandum of understanding with Korea Hydro & Nuclear Power to collaborate on the development and global deployment of its advanced nuclear technology. This partnership aims to jointly advance the design and verification of Oklo’s Aurora powerhouse and cooperate on early project development efforts. OKLO’s shares have surged 260% in the year-to-date period.

Conclusion: Hold SMR Stock for Now

NuScale Power’s advancements in SMR technology, along with its growing partnerships with tech giants and financial institutions, position it as a key player in the future of sustainable, carbon-free energy.

However, despite these innovations and collaborations, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. These factors could affect NuScale Power’s market positioning, despite its technological edge. SMR’s stretched valuation is also a concern.

NuScale Power currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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