The problem with NuScale Power (SMR 0.76%) is that the upstart company hasn't yet sold a single product. But that could change by the end of 2025, as it awaits a final decision from what could be its first big customer. Here's why investors might want to buy NuScale Power stock now and why more conservative investors might want to wait a little longer.

What does NuScale Power do?

NuScale Power is attempting to build a business around small modular nuclear reactors (SMRs). Although the company is basically using existing nuclear technology, its reactors are putting into practice the most modern methods and safety protocols. So they are a leap forward for the nuclear power industry in many ways, and the only SMR technology with U.S. Nuclear Regulatory Commission design certification, according to the company.

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Management believes it is perhaps a decade ahead of other competitors trying to build small scale nuclear reactors. In fact, the big turning point for NuScale could come at the end of 2025. That's when RoPower, a Romanian power company, is expected to make its final decision on a large capital investment project. If the new power plant gets the green light, NuScale Power will have its first sale lined up.

If approved, the RoPower project would link together six of NuScale Power's modular nuclear reactors to create a single 462 megawatt power plant. NuScale is already gearing up for the sale, as it is starting to build parts of the reactors that require long lead times. In other words, it is ready to hit the ground running at what would be an important inflection point for its business.

SMR data by YCharts

The real attraction with NuScale Power is long term

Taking its small modular nuclear power plants from the drawing board and into the real world is obviously a huge deal. It will provide proof that NuScale's technology is more than just a good idea. But it is important to spend a moment to think beyond the RoPower deal. NuScale is already doing that itself, having placed another six orders for long lead time parts in addition to the ones it will need for the RoPower sale.

Electricity demand in just the United States is expected to grow by 50% by 2050. Driving that demand will be 300% growth in power consumption from data centers over the next decade and 9,000% growth in demand from mobility, notably electric vehicles (EVs). This is on top of global demand growth from an increasing population and the demand driven by countries with populations moving up the socioeconomic ladder. NuScale very clearly appears to be on the cusp of serving a rapid increase in demand for electricity.

Which brings the story back to the technology NuScale has to offer. Small modular nuclear reactors are factory built, which makes them quicker to build than large site specific reactors. Their small size and modern design make them safer to operate as well. They can also be easily placed where needed, including closer to population centers. Basically, small modular nuclear reactors are highly flexible and cost efficient alternatives for any company that needs reliable, always-on power. That spans from utilities like RoPower to companies operating individual data centers.

Why buy NuScale Power now?

NuScale Power's stock price is down materially from its recent peak and up around 50% from its initial public offering. It is still hard to really determine what the company is worth, given that it has yet to sell a single reactor. However, if it gets the first-mover advantage it could be a very valuable company -- and that's why you might want to buy it now, before the RoPower deal is signed off on.

That said, more conservative investors will probably prefer to wait for the RoPower deal to be completed even if it means potentially giving up on some near-term gains. Indeed, if NuScale Power's small modular nuclear reactors take off as hoped, there could be a very bright, and long-term, future here.