Last month, shares of NuScale Power (NYSE: SMR) shot up more than 93%, according to data from S&P Global Market Intelligence. The designer of small modular nuclear reactors (SMRs for short) won approval for one of its designs and is benefiting from the narrative around a nuclear renaissance in the United States.

It currently has a market cap of $9 billion, zero revenue, and a share price that is up 347% in the past year.

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Here's why the stock rocketed higher yet again in the month of May.

A nuclear renaissance?

We are in the midst of a power generating revolution. The insatiable demand for electricity from artificial intelligence (AI) data centers is causing power consumption to grow again in the United States.

To prepare to match supply with demand, the large technology companies are signing long-term deals with utilities. For example, just this week, Meta Platforms signed a deal with Constellation Energy for 1.1 gigawatts of power from one of its nuclear reactors. And the president has signed executive orders calling for a reinvigoration of the nuclear power industry.

While none of this will directly impact NuScale Power, investors generally view the company in the category of nuclear stocks, which is why its shares are soaring this year. It has nothing to do with its financials, which are basically nonexistent. The company hopes to benefit from this demand when its reactors come on line, which will not be until 2030 at the earliest.

Image source: Getty Images.

The truth about NuScale Power stock

NuScale may be a hot stock today, but it is highly risky and has a difficult path ahead of it. It is generating zero revenue, will not generate any for many years, and is burning around $100 million in free cash flow annually. It has a market cap approaching $10 billion even without any sales.

SMRs are an interesting idea, but are a cutting-edge technology that may not work at scale. Investors buying shares today are essentially betting on a science project making a company with a market cap of $8.9 billion worth something well into the future.

This is not a good bet to make. It could end in pain for shareholders. Avoid NuScale Power stock today.

Should you invest $1,000 in NuScale Power right now?

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Share prices of NuScale Power (NYSE: SMR) recently hit all-time highs around $36 per share. Up more than 250% over the past year, is the stock a buy at what are historically lofty price levels?

Here are a few things to consider before you buy shares in this nuclear power start-up.

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What does NuScale Power do?

NuScale Power has big plans for its business, but right now it doesn't really have that much of a business. That's because it only brought in revenue of $13 million in the first quarter of 2025. That came with roughly $6 million in costs, leading to a gross profit of about $7 million.

With research and development costs of $9 million and selling, general, and administrative costs of $23 million, the company is nowhere near turning a profit.

Image source: Getty Images.

That's not surprising, however, given what it is trying to do. It has developed plans for a small-scale modular nuclear reactor.

Basically, it has taken current nuclear reactor technology and scaled it down. The result is a reactor that can be partially pre-built in a factory and transported to a site, which should reduce costs and complexity, and save huge amounts of time relative to the building of a large nuclear reactor on site. Its modular reactors also incorporate the latest technology, which should increase the safety of the reactors as well.

NuScale's small modular reactors could represent a sea change in the way the world thinks about and uses nuclear power. Indeed, the modular units can be transported to where they are needed, used in closer proximity to large populations, and linked together to create a larger power source. It is an exciting concept. But right now, that's all it is: a concept.

NuScale has the wind at its back, if things go as planned

The current administration in Washington appears to be very supportive of nuclear power as a source of carbon-free energy. Some executive orders from the Trump administration in May led to a swift increase in the stock price. It is now back near 52-week highs. But that's not the only reason to be optimistic here, given that it has a tentative deal to sell six of its reactors to RoPower, a Romanian power company.

It is currently working on feasibility studies to help RoPower make a final investment decision later this year. If this capital investment project gets the green light, NuScale Power will have its first official customer. That should help it land more. The company is, in fact, already preparing for additional customers, with orders for enough long-lead-time parts to build 12 of its reactors.

Data by YCharts.

The only problem is that the RoPower project won't be complete until something like 2030. So there's still a lot of time to go before the company's small modular nuclear reactors are actually market tested.

And that means that it will likely remain a story stock for at least a few more years. Story stocks tend to be very volatile, especially when they are small start-ups.

As the chart above highlights, NuScale stock fell over 50% from an early-year peak in 2025 before rebounding on the news out of Washington. And before that, it had several large drawdowns as well. This is not a stock for conservative investors. And if you buy it now, you had better be ready for a bumpy ride and have a strong belief in the glass-half-full view of the future.

Well below $31 is probably the right call

NuScale Power is getting close to an important inflection point for its business as its first potential customer nears the yes/no decision on a major capital investment project. The stock will likely rally if the answer is yes. But that doesn't mean the shares won't see yet another steep drawdown, which are kind of common events for small start-ups.

If you have a positive long-term view of the business, buying around the current price might make sense. But if you are patient, it seems likely you'll have an opportunity to buy at a potentially much lower price as NuScale's story plays out.

Should you invest $1,000 in NuScale Power right now?

Before you buy stock in NuScale Power, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NuScale Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.

Many renewable energy stocks ran out of juice over the past year as the Trump administration embraced fossil fuels and rattled the market with its divisive tariffs. However, that pullback might represent a golden buying opportunity if you expect the market's demand for renewable energy solutions to keep growing over the long term.

So if you're willing to tune out the near-term noise, these three renewable energy plays might generate some big returns from a modest $2,000 investment: NuScale Power (NYSE: SMR), Plug Power (NASDAQ: PLUG), and CleanSpark (NASDAQ: CLSK). All three of these stocks are speculative, but they could attract a lot more attention if they scale up their businesses.

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Image source: Getty Images.

The nuclear play: NuScale Power

NuScale develops small modular reactors (SMRs) for nuclear power which can be installed in vessels that are only nine feet wide and 65 feet tall. Its SMRs are also prefabricated, delivered, and assembled on site. Those advantages make them cheaper and easier to deploy than traditional nuclear reactors.

NuScale's SMRs are the only ones that have received a standard design approval from the U.S. Nuclear Regulatory Commission (NRC), but that approval only covers its reactor clusters that generate up to 55 megawatts of electricity.

For a cluster of SMRs to be more cost-effective than a comparable coal-fired plant, it must generate at least 77 megawatts of electricity. NuScale expects the NRC to approve its 77 megawatt designs this year. Until then, it's generating most of its revenue as a subcontractor on a 462-megawatt power plant project for Romania's RoPower.

NuScale only generated $37 million in revenue in 2024, but analysts expect that figure to surge to $402 million in 2027. That growth could be driven by its new NRC design approvals, more contracts in the U.S., and the soaring energy needs of the booming data center market. With a market cap of $2.06 billion, NuScale already trades at 5 times its 2027 sales -- but it has plenty of room to grow over the next few decades.

The hydrogen play: Plug Power

Plug Power develops hydrogen fuel cell, charging, storage, and transport technologies. It's deployed more than 69,000 fuel cell systems and over 250 fueling stations across the world, and it's the single largest buyer of liquid hydrogen.

Amazon and Walmart, which are invested in Plug Power through stock warrants, are two of its top customers. The two retail giants both use Plug's hydrogen fuel cells to power the electric forklifts in their warehouses.

In 2024, Plug Power's revenue declined 29% to $629 million as its net loss widened from $1.4 billion to $2.1 billion. That slowdown was caused by macro headwinds, which curbed the market's demand for new hydrogen charging projects, and tough comparisons to the inorganic expansion of its smaller cryogenics business in 2022 and 2023.

But from 2024 to 2027, analysts expect Plug's revenue to grow at a CAGR of 32%. That growth could be driven by the stabilization of the hydrogen market, new contracts, and a $1.66 billion loan guarantee from the U.S. Department of Energy for the construction of six green hydrogen manufacturing plants.

Plug Power won't turn profitable anytime soon, but it's been cutting its costs and selling some of its equipment (and leasing it back) to narrow its net losses. With a market cap of $1.2 billion, it trades at just 1.6 times this year's sales -- so any positive developments might drive its stock a lot higher over the next few years.

The clean crypto play: CleanSpark

CleanSpark originally built modular microgrids for wind, solar, and other renewable energy sources. These microgrids can be deployed as stand-alone power systems or plugged into existing energy grids -- where they're used to transfer energy into storage systems, load management solutions, and backup generators.

But four years ago, it acquired the Bitcoin miner ATL Data Centers and upgraded its miners with its microgrids. It subsequently acquired more Bitcoin miners, upgraded their plants in the same way, and mined more Bitcoins. That clean energy approach arguably made it more appealing than its coal-powered competitors.

By the end of calendar 2024, CleanSpark was holding 9,952 Bitcoins -- which are worth $819 million as of this writing. That's 38% of its market capitalization of $2.1 billion. It also expanded its fleet by 127% year over year to 201,808 miners, which increased its operating hashrate (which gauges its mining efficiency) 288% to 39.1 EH/s (exahash per second).

From fiscal 2024 (ended last September) to 2027, analysts expect CleanSpark's revenue to grow from $379 million to $1.1 billion as it narrows its net losses. Assuming it matches those expectations, it still looks reasonably valued at 1.9 times its fiscal 2027 sales. It could certainly struggle if Bitcoin's price plunges, but it could outperform many other traditional Bitcoin miners if the cryptocurrency's price stabilizes, soars higher, and attracts more retail and institutional investors.

Should you invest $1,000 in NuScale Power right now?

Before you buy stock in NuScale Power, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NuScale Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Bitcoin, and Walmart. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.

As artificial intelligence use cases grow, the demand for energy from data centers is set to skyrocket. This ever-increasing need for power opens doors for innovative energy solutions, and nuclear energy is rapidly coming back in favor, backed by nations eager to embrace it.

Enter NuScale Power (NYSE: SMR), an innovator in advanced small modular reactors that could revolutionize how nuclear energy is distributed. These compact reactors promise efficient deployment and could help reduce the cost of deploying nuclear power. Could investing in NuScale be your ticket to millionaire status? Let's explore the company and its opportunity to find out.

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NuScale's nuclear innovation

Small modular reactors (SMRs) are cutting-edge technology that could change nuclear power generation as we know it. Founded in 2007, NuScale designs compact SMRs that could provide a scalable, efficient, and safer alternative to traditional nuclear plants.

Its NuScale Power Module is the first SMR to receive a standard design approval from the U.S. Nuclear Regulatory Commission (NRC), giving NuScale a critical first-mover advantage over peers. The NRC has approved its 50 megawatt-electric (MWe) design, and NuScale is looking to upsize that reactor to 77 MWe and expects this larger version to receive approval sometime this year. Up to 12 modules can be assembled per plant, providing up to 924 MWe in energy.

NuScale has significant backing from Fluor, a construction company that provides services across industries, including energy. Since 2011, Fluor has invested over $600 million in NuScale to support its development and has been instrumental in helping NuScale bring its VOYGR power plant to the market.

What's next for NuScale Power

NuScale is looking to build its plants efficiently and is targeting existing coal plants, which could save up to 15% to 35% on construction costs. With Fluor's help, NuScale is developing a small modular reactor power station at a former coal plant in Doicești, Romania. This project is known as the VOYGR-6 SMR power plant and will consist of six NuScale Power Modules and generate 462 megawatts of electricity.

The project is backed by public and private funding, including contributions from the United States, Japan, South Korea, and the United Arab Emirates. The U.S. Export-Import Bank has committed up to $99 million for initial work, with additional funding of up to $4 billion being considered for the project's deployment.

Image source: Getty Images.

Investors should consider the following

NuScale's technology is exciting, but investors shouldn't ignore the risks of buying the stock. For one, the company continues to rack up losses as it works to get its technology approved and build its facilities. Over the last 12 months, NuScale has lost $137 million against $37 million in revenue. In the fourth quarter, the company bolstered its balance sheet with $446.7 million in cash -- providing it with a runway for the next few years.

Second, it will take several years before NuScale achieves widespread commercial operations. The target date for opening its Romanian plant is 2029, and four years is a long time when things could go wrong. Any cancellations (such as with its UAMPS project a couple of years ago), delays, or a lack of customer interest would be detrimental for the stock.

Is NuScale Power a millionaire-maker stock?

NuScale Power has long-term potential and could be a key player in helping countries deploy nuclear power on a large scale. Over the past few years, 31 countries have signed a Declaration to Triple Nuclear Energy by 2050. If NuScale's products work well and prove cheaper and more efficient, it could grow tremendously.

NuScale certainly has millionaire-maker potential once it gains footing, but it remains highly speculative at this point, leaving it best suited for aggressive investors. Even so, those wishing to own the stock should maintain a small position as part of a more extensive, diverse portfolio and build up that position over time as NuScale reaches key milestones and works toward commercial operations at scale.

Should you invest $1,000 in NuScale Power right now?

Before you buy stock in NuScale Power, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and NuScale Power wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $590,231!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.