Motley Fool analyst recommends NuScale amid AI-driven 'nuclear renaissance'

Investors should take a closer look at shares of NuScale Power, a mid-cap developer of nuclear reactors, argues Motley Fool contributor Ryan Vanzo. The world is entering a “nuclear renaissance” driven by rising demand from the AI segment, he says. NuScale shares could generate billions for investors, who must be prepared to hold them for an “incredibly long” time, he cautions.

Shares of nuclear companies such as NuScale could increase the value of an investment portfolio by 1,000%, according to Vanzo. The primary driver is growing electricity demand fueled by AI technologies.

Against peers, NuScale stands out for its focus on small modular reactors (SMRs), which are miniature nuclear power plants that can be deployed more quickly and at lower cost than traditional systems. As a result, this approach can reduce upfront construction costs, shorten deployment timelines, and allow additional modules to be added over time, Vanzo notes.

For a long time, electricity demand in the U.S. stagnated, largely due to slower population growth and a stronger emphasis on energy efficiency, the analyst explains.

That trend is now reversing: U.S. electricity demand is expected to grow by 4% annually through 2030, with AI’s share of consumption rising from 4.3% to 11.7%, according to Motley Fool data.

“Previously flatlined electricity demand has largely left electric utilities flatfooted. Across the country, there is now a race to get new, low-carbon energy sources online to power the AI revolution,” Vanzo writes.

To meet this demand, global nuclear capacity will need to triple by mid-century, while total investment in the sector will exceed $3 trillion over the next 25 years, BofA said in September. The bank estimates the nuclear energy market at $10 trillion.

Year to date, NuScale shares have fallen more than 30% to $9.90 apiece. The decline began in late January, although the company released no corporate updates at the time. A second leg down came in late February, when NuScale reported disappointing 2025 financial results: revenue fell nearly 15% to $31.5 million.

This was followed by a wave of target price downgrades from Wall Street analysts: Canaccord lowered its target price from $60 to $25 per share, Goldman Sachs lowered its target price from $20 to $14 per share, Citigroup lowered its target price from $18.5 to $11.5 per share, RBC Capital Markets lowered its target price from $21 to $14 per share, and UBS lowered its target price from $20 to $13 per share.

The most common rating on NuScale shares is “hold,” with seven Wall Street analysts recommending it. Another six rate the stock “buy,” and two “sell.” The average target price stands at $18.70 per share, implying nearly 89% upside from the closing price on Wednesday.