Can NuScale's TVA Opportunity Unlock Its Next Growth Phase?

NuScale Power Corporation SMR is approaching a potentially important commercial inflection point as ENTRA1 Energy advances discussions with the Tennessee Valley Authority toward definitive power purchase agreements. However, the stock has lost more than 75% over the past year, underscoring how much investor sentiment has weakened despite the company’s progress toward commercialization.

Image Source: Zacks Investment Research

A completed agreement could move NuScale beyond years of readiness spending and into licensing, front-end engineering and equipment negotiations, creating a clearer path to revenue before eventual module deliveries.

NuScale’s TVA Opportunity Could Reach Gigawatt Scale

The ENTRA1-TVA collaboration contemplates up to 6 gigawatts of new nuclear capacity using NuScale technology. That scale makes the proposed program NuScale’s clearest route to a major U.S. commercial deployment and could create work across licensing, engineering and future module supply.

The broader advanced-nuclear market is also moving toward deployment. GE Vernova GEV, through GE Vernova Hitachi Nuclear Energy, has the BWRX-300 under construction in Canada, while the U.S. Nuclear Regulatory Commission is reviewing TVA’s application for a BWRX-300 at Clinch River. Oklo Inc. OKLO is developing fast-fission power plants and related fuel-cycle capabilities, underscoring the competition to convert nuclear technology into operating assets.

Image Source: NuScale Power Corporation

SMR Is Waiting for a Definitive Commercial Trigger

Management said in August 2026 that ENTRA1-TVA discussions were active and progressing. NuScale is prepared to begin licensing, front-end engineering and original equipment manufacturer negotiations once definitive agreements are completed.

That makes the power purchase agreement process a critical gateway. Until agreements are signed, the opportunity remains prospective, and the timing of meaningful project revenues remains uncertain.

NuScale Can Reuse Prior Licensing Work

NuScale estimates that about 60% of work from a previous U.S. combined construction and operating license application can be reused for a future domestic project. Management said this would be among the first initiatives after power purchase agreements are in place.

Reuse could reduce duplicated effort as a new customer project moves into site-specific licensing. It does not eliminate the regulatory process, but it gives NuScale a base of completed work that may help advance a U.S. project more efficiently.

SMR Has Invested Ahead of a Potential TVA Deal

NuScale has already spent to prepare for deployment. Detailed design work for critical-path components is substantially complete, and agreements are in place with more than half of its network of more than 60 specialized suppliers.

Long-lead material work in process reached $68.6 million at June 30, 2026. The company also ended the second quarter with about $1.9 billion in cash, cash equivalents and short- and long-term investments, providing capacity for working capital, supply-chain investment, design finalization and fuel-system readiness before substantial customer revenue arrives.

NuScale’s Ranking Adds Support but Not Contract Certainty

TVA could become the commercial trigger that shifts NuScale from readiness spending toward a larger revenue-producing program. The opportunity is sizable, but the investment case still depends on discussions becoming binding agreements and projects progressing through licensing and execution.

SMR currently carries a Zacks Rank #2 (Buy) and a Momentum Score of A, which support a constructive near-term view. Its Value Score of F, Growth Score of F and VGM Score of F are less favorable. The combination favors attention to near-term momentum while keeping contract conversion and execution risk central to the outlook.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research