Why I'm Not Chasing NuScale -- Here's What I'm Buying Instead
2026-08-11 11:30
•Matt Dilallo •The Motley Fool
•••••••• •• Axe Cap view
Why I'm Not Chasing NuScale -- Here's What I'm Buying Instead
NuScale’s tech is promising but too speculative; Brookfield Renewable offers steady profits and nuclear exposure with less risk.
NuScale’s small modular reactor tech sounds like the future, but the reality is it’s still years away from meaningful revenue—its recent quarter barely scraped $75,000. Betting on this kind of speculative play is gambling more than investing, especially when you consider the execution risks and lack of proven commercial contracts. South African investors would be better served looking at Brookfield Renewable, a company with solid earnings and a reliable dividend. Brookfield’s massive asset base and clear five-year growth outlook — over 200 GW in the pipeline — offer real cash flow now and visible expansion ahead. Plus, its 51% stake in Westinghouse Electric gives indirect exposure to the nuclear sector without the lottery ticket risk. While Brookfield is not JSE-listed, this story translates into a preference for stable dividend payers and infrastructure plays here, where companies like Sasol or even some of the banks offer more tangible earnings than speculative energy tech. The view could be wrong if NuScale rapidly commercialises and secures contracts, but for now, patience and pragmatism pay better. this is just our opinion and not financial advice
Avoid speculative NuScale and similar pure tech bets. Instead, focus on steady dividend payers with exposure to energy and infrastructure, like Brookfield Renewable offshore, or high-quality JSE names offering tangible cash flow such as Sasol or Standard Bank.
- BEPC
- USD/ZAR
- Sasol
- NuScale commercial rollout accelerates unexpectedly
- Market volatility affecting dividend stocks and broad risk appetite
7/10
The author argues against investing in NuScale Power despite its promising small modular reactor technology, citing its speculative nature and lack of near-term revenue generation. Instead, he recommends Brookfield Renewable, which offers established operations, meaningful current profits, visible growth through 2031, and indirect nuclear exposure via its 51% stake in Westinghouse Electric.
Our take is based on reporting first published by The Motley Fool.