Over the past few years, the explosive growth of the artificial intelligence (AI) market drove many investors toward chipmakers like Nvidia and software giants like Microsoft. However, that secular trend is also stirring up strong tailwinds for nuclear power companies that are addressing the soaring energy needs of those big cloud and AI data centers.
Two smaller nuclear energy companies often associated with the AI market are NuScale Power (SMR 1.22%) and Oklo (OKLO 1.22%). Let's see why these two companies could benefit from the AI boom -- and which stock is the better buy right now.
Image source: Getty Images.
The differences between NuScale and Oklo
NuScale and Oklo both produce smaller and scalable nuclear reactors. NuScale develops small modular reactors (SMRs), which each generate up to 77 megawatts of electricity (MWe). It chains together those modules in flexible configurations that are easier to deploy than traditional nuclear reactors.
Its VOYGR-6 configuration connects six of its 77 MWe modules to generate 462 MWe, while its top-tier VOYGR-12 configuration connects 12 modules to generate 924 MWe.
NuScale is the only company that holds Standard Design Approvals from the U.S. Nuclear Regulatory Commission (NRC) for its SMRs. The NRC approved its 50 MWe design in January of 2023 and its 77 MWe design this May. Its 77 MWe design takes up 1% of the space of a traditional nuclear reactor but generates the same amount of power.
Oklo's flagship product, the Aurora, is a much smaller microreactor that only generates 1.5 MWe of power. These tiny microreactors can be chained together in bigger deployments that generate 15 to 100 MWe, and that flexibility makes them well-suited for remote and off-grid deployments.
Oklo's microreactors run on metallic uranium fuel pellets -- which are denser, more thermal resistant, and cheaper to make than the standard uranium dioxide fuel pellets used by NuScale and other reactor makers. Its fabricated metallic pellets are also easier to reprocess and recycle in a closed loop that can operate for about a decade without being refueled.
NuScale's SMRs need to be refueled every two years, but their modular design allows them to be fueled in stages so the entire plant doesn't go offline.
Which company is growing faster?
The density, scalability, and power efficiency of SMRs and microreactors are attracting a lot of attention from energy companies and power-hungry data center operators. However, both of these companies could struggle with growing pains over the next few years.
In 2023, NuScale suffered a major setback when its soaring expenses forced it to cancel its plan to build six nuclear reactors in Idaho. Today, it generates most of its revenue in Romania, where it serves as a subcontractor for Fluor's planned construction of a 462 MWe plant. That project is still in the front-end engineering and design phase, but it's expected to receive a final investment decision in 2026.
The NRC's recent approval of its 77 MWe design also opens the door for NuScale's stateside comeback. It has already been holding active discussions with five hyperscale data center operators in the U.S. to support that return.
In 2024, NuScale's revenue rose 62% to $37 million, but its net loss more than doubled to $137 million. In 2025, analysts expect its revenue to rise 34% to $50 million as it narrows its net loss to $69 million.
That growth could be driven by the final investment decision in Romania, which would pave the way toward the construction of its first plants, and new domestic data center contracts. But with a market capitalization of $6.7 billion, NuScale already looks richly valued at 135 times this year's sales.
Oklo isn't expected to generate any revenue until it deploys its first reactors in Idaho in late 2027 or early 2028. Analysts expect it to rack up net losses of $66 million in 2025 and $78 million in 2026. Yet its market value sits at $10.2 billion -- which is more than 762 times the $13 million in revenue it's expected to generate in 2027.
The shares probably trades at that frothy valuation because Sam Altman, the CEO of OpenAI, previously served as its CEO and chairman. Altman remains one of the company's top investors.
The better buy: NuScale
The SMRs from NuScale might not be as forward-thinking as Oklo's microreactors, but they're well-suited for building big nuclear plants that could replace older fossil fuel plants. They can also be used to directly power data centers and factories. Microreactors are ideal for small deployments in remote areas, but they're not economical for larger-scale power plants.
NuScale is still a speculative investment, but it's on firmer ground than Oklo -- which still looks grossly overvalued and hasn't generated a dollar of meaningful revenue yet. That's why I expect NuScale's stock to remain a better play on nuclear power than Oklo for the foreseeable future.
