NuScale Power (SMR) Stock Surges Following Amazon Partnership — Major Funding Decision Looms

Key Takeaways

• NuScale Power (SMR) stock rallied after Amazon announced partnerships to deploy SMR technology for powering artificial intelligence data centers
• In February, Romania approved NuScale’s 462-megawatt project’s Final Investment Decision, transitioning the initiative from planning to execution phase
• The Romania project’s financing package — valued at approximately $7 billion — requires around six months from mid-February, suggesting a possible announcement near late August
• Bank of America resumed coverage with a Neutral stance and $12 target, recognizing NuScale’s regulatory advantage while noting gradual deal progression
• As the sole holder of U.S. NRC Standard Design Approval for small modular reactors, NuScale maintains a competitive credibility advantage

NuScale Power (SMR) is currently changing hands near $11.40, reflecting a year-to-date decline of approximately 27%, though recent spring developments have market participants closely monitoring developments heading into summer.

NuScale Power Corporation, SMR

Shares experienced a notable uptick last week following Amazon’s announcement of agreements to utilize small modular reactor technology for its artificial intelligence data center operations. NuScale, recognized as a leading player in the SMR sector, benefited from the resulting positive sentiment.

Trading activity in SMR reached 30.2 million shares on the day Amazon revealed its plans, compared to the typical 28.9 million daily average — demonstrating the market’s responsiveness to developments in this emerging sector.

However, the potentially more significant catalyst may originate from Eastern Europe.

This past February, Romania’s energy minister revealed a Final Investment Decision regarding NuScale’s 462-megawatt SMR facility in Doicești. The initiative aims to replace 600 MW of coal-fired generation with clean, reliable power utilizing six NuScale reactor modules.

This decision advanced the project beyond the analytical stage into active implementation. The remaining requirement is securing financial backing.

Romanian Prime Minister Ilie Bolojan estimated construction expenses could reach $7 billion. He maintained a measured tone regarding the timeline, noting the funding structure remained under development and that “the complexity of such projects and the technology being in early days” indicated the investment wouldn’t materialize instantly.

Yet Romania’s energy minister provided more concrete timing guidance: the financing process would require approximately six months beginning mid-February. Based on this timeline, a potential announcement could surface around mid-to-late August.

Bank of America Resumes Coverage With Neutral Outlook

Bank of America reinitiated coverage of NuScale on May 22, assigning a Neutral rating alongside a $12 price objective.

The firm’s analyst recognized NuScale’s competitive position — it remains the exclusive SMR developer possessing U.S. Nuclear Regulatory Commission Standard Design Approval, establishing a “clear credibility lead versus peers.”

However, BofA also identified legitimate headwinds. Revenue generation currently derives from services rather than reactor construction activities. Initial reactor operations aren’t anticipated until the early 2030s. Additionally, the conversion rate from signed memorandums to definitive contracts has proceeded more gradually than expected.

This final observation merits attention. NuScale maintains a substantial project pipeline, including a 6-gigawatt arrangement with ENTRA1 and commitments with the Tennessee Valley Authority for eastern U.S. deployment. The conversion of these agreements into binding commitments will prove significant.

The Small Modular Reactor Proposition

NuScale’s value proposition centers on a clear premise: SMRs offer accelerated and more economical construction compared to traditional nuclear facilities, while their modular design enables incremental capacity expansion.

In 2023, NuScale achieved a milestone as the first American company securing NRC Standard Design Approval for an SMR. This represents a substantial regulatory achievement ahead of any rival.

SMR’s 52-week trading range spans from $8.85 to $57.42 — a considerable variance illustrating the dramatic sentiment shifts surrounding this equity over the past twelve months.

The coming months may prove decisive. Should Romania’s financing materialize according to schedule, NuScale would possess one of its most substantial pipeline projects with both regulatory clearance and capital commitment in place.

The post NuScale Power (SMR) Stock Surges Following Amazon Partnership — Major Funding Decision Looms appeared first on Blockonomi.