NuScale Power Stock Could Triple by 2030. Here's Why.
2026-08-07 13:30
•Ryan Vanzo •The Motley Fool
•••••• ••••••••••••••••• Axe Cap view
Nuclear Energy’s Future: Why NuScale’s Triple-Upside Is a Stretch for SA Investors
NuScale Power’s small modular reactor tech might shine globally, but South African investors should stay cautious.
NuScale Power is positioned in a growth area of nuclear energy driven by AI and data centres, with a potential multi-billion-dollar contract by 2026 unlocking upside by 2030. But the company’s history shows zero completed projects and was hit recently by a major cancellation tied to cost overruns. That makes it a risky bet. South African investors don’t have direct access to such niche nuclear plays locally, so the closest relevance is via the rand’s performance against the dollar. A weaker rand generally signals caution around US risk assets, including emerging tech plays like NuScale. For local markets, this story does little to change the near-term outlook for the JSE’s main sectors. Instead, if you want to play energy, Sasol offers a more direct and understandable route. For financials, banks like Standard Bank remain tied to credit trends and domestic growth, arguably safer. NuScale’s promise might be big, but the path is unproven and volatile, so it’s better to watch for now. this is just our opinion and not financial advice
Avoid NuScale directly; instead watch USD/ZAR for signs of risk-on appetite. Consider safer domestic exposures like Standard Bank or Sasol for more tangible macro plays on global energy or credit trends.
- USD/ZAR
- Standard Bank
- Sasol
- NuScale project execution failure
- Rand volatility driven by US dollar strength
5/10
NuScale Power, a nuclear energy company with a sub-$4 billion market cap, is positioned to benefit from surging demand for nuclear energy driven by AI and data centers. Bank of America predicts nuclear capacity will triple by 2050 with $3 trillion in investment. NuScale's key catalyst is a potential power purchase agreement (PPA) with Tennessee Valley Authority expected by end of 2026, which could unlock over $1 billion in revenue by 2030. However, the stock remains volatile and risky given NuScale has never successfully completed a project and faced a major cancellation in 2024 due to cost overruns.
Our take is based on reporting first published by The Motley Fool.