NuScale Power shares jumped over 4% on January 9 after Bank of America analysts upgraded the company to Neutral from Underperform and set a $28 price target, implying roughly 36% upside. Trading volume that day reached 49.3 million shares, nearly 90% above the three-month average of 26.3 million. The upgrade cited the company’s certified SMR design and framework agreement with the Tennessee Valley Authority as evidence of a lower risk profile.

NuScale’s small modular reactor design cleared two major U.S. Nuclear Regulatory Commission milestones: standard design approval for its 50-megawatt-electric module in 2023 and for its uprated 77-megawatt-electric version in May 2025. These certifications make NuScale the only company with multiple NRC-approved SMR designs, enabling potential six-module VOYGR plants that scale to 462 megawatts using passive safety systems reliant on natural convection and gravity.

This week’s announcement by a leading hyperscaler committing to 6.6 gigawatts of nuclear energy over 20 years lifted the entire sector, including NuScale, which was not a named partner. Comparable SMR builders Oklo and TerraPower secured 1.2 GW and 0.69 GW deals respectively. NuScale’s ongoing discussions with tier-one data-center operators and framework agreements position it to capture similar long-term off-take contracts once reactors enter construction.

Despite regulatory progress, NuScale remains years away from its first revenue-generating plant, with initial commercial deployment expected in the latter half of the decade. The company trades at a market capitalization above $5 billion despite minimal operating income. Investors should weigh the lengthy development timeline, multi-year licensing and construction phases, and competition from other SMR developers when assessing risk versus potential upside.