NuScale Power (SMR), a pioneer in small modular reactor (SMR) technology, experienced a significant 5.06% plunge during Thursday's trading session. The sharp decline comes as investors reassess the competitive landscape, valuation concerns, and digest news of a major shareholder sell-off in the evolving SMR market.

The drop 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.

Adding to the downward pressure on NuScale's stock, it was recently revealed that Fluor Corp., a majority shareholder, completed a sale of 15 million Class A common stock shares for $605 million. This significant sell-off, which reduced Fluor's equity ownership to 39%, may have further contributed to investor concerns and the stock's decline. 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.