Is NuScale Power Stock a Buy After September Slump?
2026-10-08 14:37
•Neha Chamaria •The Motley Fool
••• •••• Axe Cap view
NuScale Power: Too Early for South African Investors
NuScale’s stock struggles reflect deep challenges amid fierce competition and heavy cash burn, with little to offer JSE investors right now.
NuScale Power’s nearly 55% drop this year is no surprise given its huge cash burn and almost zero revenue recently. Waiting five years or more for nuclear projects isn’t appealing when competitors like Rolls-Royce and General Electric make clearer progress. For South African investors, this story doesn’t map well. Our local energy giants like Sasol are still far removed from small modular reactors, and the rand’s direction won’t hinge on unproven US nuclear tech ventures. Until NuScale secures firm contracts and shows a path to profit, it’s best to avoid. The one caveat is if they announce binding deals on November 5; that could spark a relief rally. But until then, patience is key and better energy plays remain on the JSE. this is just our opinion and not financial advice
Avoid NuScale stock and focus on more tangible local energy names like Sasol for immediate rand and sector exposure. Keep an eye on USD/ZAR for broader risk sentiment.
- NuScale Power (SMR)
- USD/ZAR
- Sasol
- NuScale lands firm contracts sooner than expected
- Renewed US nuclear policy boosts SMR sector visibility
7/10
NuScale Power stock fell 14.8% in September and nearly 55% year-to-date amid analyst downgrades, cash-burn concerns, and competitive pressure. UBS downgraded the stock to sell with a $6 price target, citing lack of firm customer commitments and a 5+ year build timeline while competitors advance faster. The company reported a 99% revenue collapse to $75,000 in Q2 with $65 million in operational losses. Investors await Q3 earnings on Nov. 5 for news on converting the non-binding TVA agreement into a definite contract.
Our take is based on reporting first published by The Motley Fool.