NuScale Power: A Battle for Survival Amidst Conflicting Signals

Nuscale Power US67079K1007

The viability of NuScale Power, a pioneer in small modular nuclear reactor technology, is under intense scrutiny. The company finds itself at a critical juncture, caught between institutional confidence and internal skepticism, following a deeply disappointing financial quarter.

Recent investment activity paints a contradictory picture. On one hand, the Swiss National Bank has significantly increased its stake in NuScale Power by 14.3%, signaling substantial institutional belief in the long-term nuclear sector. Conversely, a wave of insider selling has swept through the company. Over the preceding 90 days, corporate insiders disposed of a massive 15 million shares. This stark divergence between external endorsement and internal divestment raises significant questions about the company's near-term prospects.

A Quarter of Significant Misses

The company's operational challenges were laid bare in its Q3 2025 report, which fell dramatically short of market expectations. Analysts had anticipated a loss per share of $0.13; the actual figure was a staggering $1.85—a miss exceeding 1,300%. Revenue also disappointed, coming in at $8.24 million against a forecast of $11.55 million. These results underscore the formidable hurdles NuScale faces in commercializing its reactor technology.

Analyst Sentiment Turns Cautious

The view from Wall Street is predominantly cautious. The current analyst consensus recommendation stands at "Reduce," accompanied by an average price target of just $36.12. Opinions vary widely from "Buy" to "Sell," reflecting the high degree of uncertainty surrounding the stock. In a notable move, UBS recently slashed its price target from $38 to $20, while maintaining a "Neutral" rating. The bank cited several concerns: the pending divestment of Fluor's stake, the potential for future capital raises to fund project milestones, and delays in final investment decisions for major projects.

Financial Resilience Meets Market Volatility

Despite the bleak operational update, NuScale's balance sheet provides a measure of stability. The company maintains a position where its liquid assets exceed its debt, offering a crucial financial buffer during this transition from development to commercial readiness. The core question for investors is whether NuScale can achieve a commercial breakthrough before exhausting its capital or the market's patience. The stock's extreme volatility—it has closed higher on only 12 of the last 30 trading days—suggests the market has yet to reach a verdict on the answer.