NuScale Power Gains as BofA Sets $28 Target, Volume Surges 87%
Bank of America upgraded NuScale Power to neutral with a $28 price target, implying 36.5% upside, while shares rose 4.3% on January 9 on heavy 49.3 million volume, 87% above average. No company fundamentals were released, indicating options trading drove the stock’s latest rally.
1. Bank of America Upgrade Spurs NuScale Power Rally
Bank of America analysts upgraded NuScale Power to Neutral from Underperform and set a $28 price target, implying more than 35% upside from the prior close. The upgrade reflects confidence in NuScale’s standardized small modular reactor (SMR) design and its agreement framework with the Tennessee Valley Authority. Following the announcement, NuScale shares rose over 8%, with trading volume nearly doubling the three-month average, signaling renewed investor interest in the company’s path to commercialization.
2. Meta Platforms’ Nuclear Agreements Lift Sector Sentiment
Meta Platforms announced 20-year offtake agreements totaling 6.6 gigawatts of power for its AI data centers, partnering with Vistra, Oklo and TerraPower. Although NuScale was not included in these deals, the broader nuclear sector rallied on prospects of AI-driven electricity demand. Investors view this as a catalyst for future hyperscaler partnerships with NuScale, given its NRC-certified SMR designs and potential for behind-the-meter deployments to satisfy hyperscalers’ reliability requirements.
3. Regulatory Milestones Validate SMR Design
NuScale achieved two key Nuclear Regulatory Commission approvals: its initial 50-megawatt-electric module in 2023 and an uprated 77-megawatt-electric version in May 2025. These certifications make NuScale the only vendor with multiple SMR designs cleared by the NRC, reducing licensing risk and accelerating project timelines. The company’s VOYGR plant configuration, scalable up to six modules for 462 megawatts, leverages passive safety systems—relying on convection and gravity—to meet stringent reliability standards without active safety pumps.
4. Investor Outlook: Timing and Valuation Considerations
Despite having no commercial plants in operation, NuScale commands a market capitalization exceeding $5 billion. Analysts caution that revenue generation remains several years away, with first-of-a-kind deployment targeted for the late 2020s. However, NuScale’s regulatory lead, strategic partnerships and growing demand for carbon-free baseload power underpin a long-term growth thesis. At current valuations, speculative investors view SMR exposure as a contrarian play on the next phase of AI infrastructure build-out, while those with lower risk tolerance may await contract awards before committing capital.