NuScale Power Navigates Steep Valuation Decline Amid Space Nuclear Ambitions

NuScale Power (NYSE: SMR) is attempting to pivot toward long-term growth catalysts after its stock price plummeted 70% over the last six months. While the company struggles with profitability and the absence of operational commercial reactors, it remains a central player in the emerging small modular reactor (SMR) landscape. The company currently holds a strategic edge as the only SMR technology design approved by the U.S. Nuclear Regulatory Commission. This regulatory milestone, supported by a portfolio of over 700 patents across 21 countries, positions NuScale as a primary candidate for upcoming government contracts. A significant potential driver is the U.S. government's objective to deploy nuclear reactors in orbit by 2028 and on the moon by 2030. This initiative is bolstered by a December 2025 executive order aimed at enabling near-term utilization of space nuclear power, which could provide a new revenue stream if NuScale successfully secures and deploys these contracts. The SMR market remains nascent. Projections vary, with some estimates placing the global SMR market at $6.5 billion in 2025, growing to $10.6 billion by 2033, while other forecasts suggest a rise to $17.3 billion by 2035. Additionally, the space power supply market is expected to reach $6.5 billion by 2034. Beyond space, nuclear energy currently provides 15% of the electricity for data centers. As AI-driven power demands increase, SMRs could become critical infrastructure for the U.S. energy grid by the 2030s. However, investors remain cautious as NuScale has yet to transition from design approval to commercial execution.