1 Reason to Buy NuScale Power Stock This August

NuScale Power (NYSE: SMR) remains one of the most popular nuclear energy stocks on the planet. And it's not hard to understand why.

Bank of America analysts believe we're entering a nuclear renaissance driven by rising energy demand stemming from the global adoption of AI technologies. In all, Bank of America's research team sees a $10 trillion market opportunity for nuclear energy firms like NuScale.

"This potential [for nuclear energy] has more momentum than before," notes one Wall Street analyst. "There are data centers looking for firm and dispatchable and clean generation, and nuclear power can cover that."

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Thus far, it has been a roller-coaster ride for NuScale shareholders. At one point in 2025, shares were up roughly 157%. In the back half of 2025, however, the stock gave up all of those gains. And thus far in 2026, shares are down roughly 41%, pushing NuScale's market cap to roughly $3.07 billion.

After years of volatility, now might be the time to pick up shares of this struggling nuclear energy stock. That's because arguably the biggest catalyst in the company's history may soon be on the way.

NuScale Power investors should be excited about this upcoming catalyst

Despite struggles with its stock price, NuScale remains a promising nuclear energy stock. The company is focused on designing and building small modular reactors, or SMRs. These nuclear systems have smaller footprints, faster deployment times, and lower initial costs compared to larger conventional nuclear power plants. In other words, NuScale's SMRs are an ideal solution to meet the AI industry's rapidly rising demands for more clean energy.

NuScale remains the only company in the U.S. with regulatory approval for building SMRs, although many other competitors are quickly advancing their own designs in hopes of government approval.

Regulatory approval likely helped NuScale close a landmark deal with the Tennessee Valley Authority (TVA) late last year. The deal calls for NuScale to build a 6 GW SMR system. If built, it could become the largest SMR system in the world, depending on how quickly other projects advance through permitting and construction.

There's just one problem: TVA hasn't actually committed to buying power from NuScale's power plant. Unless a long-term power purchase agreement (PPA) is signed, NuScale won't begin construction. Uncertainty surrounding a potential PPA has likely weighed heavily on NuScale stock. But that uncertainty could be lifted by the end of this year, when NuScale's CFO, Robert Hamady, predicts a PPA will be finalized.

"We're hopeful that TVA can come across the line at some point later this year," NuScale's CFO revealed in May. A PPA would clear the way not only for site construction to begin, but also for additional milestone payments to be accrued. "I hope to be operationally cash flow positive by the end of this year," Hamady predicts, should a PPA be signed before then.

By the end of 2026, NuScale may have secured firm financial commitments from the largest customer in its pipeline. It may also have significant funding uncertainty cleared up. While I don't expect a PPA to be signed until the very end of 2026 at the latest, investors who have been waiting on the sidelines should give NuScale stronger consideration now that the company's market cap has fallen below $3 billion.

Bank of America is an advertising partner of Motley Fool Money. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.