Why NuScale Power Stock Plunged to a 52-Week Low in July
Key Points
NuScale Power's only revenue source has dried up.
It is yet to sign its first binding customer contract, and its first small modular reactor is still years away.
Holding the distinction of being the first small modular reactor (SMR) developer with a U.S. Nuclear Regulatory Commission design approval hasn't been able to save NuScale Power (NYSE: SMR) from a rough start to 2026.
The nuclear energy stock slumped 16.1% in July according to data provided by S&P Global Market Intelligence, hitting a 52-week low near $7.21 on July 17 as market sentiment cooled on pre-revenue artificial-intelligence (AI) power plays.
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By the end of July, NuScale shares had fallen 40% in the year. They're regaining some of the lost ground, though, in August so far. Could this be the turnaround point?
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What is happening with NuScale stock?
The core problem with NuScale is that it is still developing SMRs. It doesn't have a binding customer contract yet, and doesn't expect to deliver its first nuclear power module – each of which is a self-contained reactor with a capacity to generate 77 megawatt electrical of power -- before 2031.
That's five more years to go to see the first commercial product from a company trading at a market capitalization of $4 billion after the steep fall.
Money has flowed out, not in. NuScale's revenue cratered in the first quarter as it wrapped up services on a project in Romania, leaving it with virtually no active revenue sources. Its losses swelled because of "milestone" payments to exclusive commercialization partner, ENTRA1 Energy. No one quite understood the nature of NuScale's agreement with ENTRA1 Energy, and some investors even filed class action lawsuits.
The one thing that could have changed the narrative -- a signed power purchase agreement (PPA)-- failed to materialize even in July, reminding investors that NuScale is still a "story" stock.
Analysts turned cautious, too. Analysts from Barclays cut NuScale stock's price target to from $15 per share to $11 a share, while those from Canaccord Genuity slashed their price target to $15 apiece from $25 per share.
It keeps getting worse.
Is NuScale stock a buy now?
When NuScale announced its second-quarter numbers in early August, the results confirmed Wall Street's worst fears. Revenue came in at a microscopic $75,000, down 99% year over year from $8.1 million. Losses continue to mount, and cash burn lingers.
Analysts from Citigroup slashed NuScale's price target to $6.50 per share from $7.50 per share after Q2 earnings.
For investors, NuScale's July fall highlights the gap between a long-term thesis and short-term reality. Clean, carbon-free energy is an undeniable growth market amid the AI build-out, and NuScale's regulatory design approval gives it an edge. However, until the company signs a PPA, it'll be a speculative and volatile ride.
Citigroup is an advertising partner of Motley Fool Money. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.