NuScale Power (SMR), a pioneer in small modular reactor (SMR) technology, saw its stock plummet 5.09% during Thursday's trading session. The significant drop comes as investors reassess the competitive landscape and valuation concerns in the burgeoning SMR market.

The decline in NuScale's stock price appears to be driven by several factors. Firstly, the SMR market is becoming increasingly competitive, with companies like Oklo, Westinghouse, and GE Vernova also developing their own SMR technologies. This rising competition could potentially challenge NuScale's first-mover advantage and market share prospects.

Additionally, there are growing concerns about the valuation of energy companies with little to no revenue, particularly those riding the wave of artificial intelligence (AI) and clean energy enthusiasm. NuScale Power, despite its progress in SMR development, is not expected to turn a profit until 2030, according to Wall Street analysts. This long runway to profitability, coupled with the company's current market valuation, may be causing some investors to reconsider their positions.

As the SMR industry continues to evolve, investors will likely keep a close eye on NuScale's ability to secure orders, navigate regulatory challenges, and maintain its competitive edge in an increasingly crowded market. The company's performance in the coming months could be crucial in determining whether it can justify its valuation and deliver on the promise of small modular nuclear reactors.