Oklo (OKLO +0.44%) and Nextracker (NXT +4.45%) both aim to disrupt established segments of the energy industry with newer technologies. Oklo develops small microreactors that can be linked together in smaller deployments than traditional nuclear reactors. Nextracker's solar tracking systems shift and tilt solar panels so that they automatically follow the sun's movement.
Over the past 12 months, Oklo's stock has skyrocketed by more than 1,300% while Nextracker's stock nearly doubled. But which of these soaring energy stocks is a better buy from here?
Image source: Getty Images.
How could Oklo disrupt the nuclear industry?
Each of Oklo's Aurora microreactors only generates 1.5 megawatts (MW) of electricity, but they can be chained together in clusters to generate 15 MW to 100 MW of power. That flexibility makes them better suited for remote and off-grid deployments than traditional nuclear reactors, which produce about 1,000 MW of power and aren't inherently modular.
The Aurora reactor also uses metallic uranium fuel pellets, which are denser, more resistant to high temperatures, and cheaper to fabricate than the uranium dioxide fuel pellets used in traditional nuclear reactors. Metallic uranium fuel pellets can also be reprocessed and recycled in a closed loop, so the reactors don't need to be refueled for about a decade. Traditional nuclear reactors need to be refueled every two years.
NYSE: OKLO
Key Data Points
Oklo initially attracted a lot of attention because Sam Altman, the CEO of OpenAI, was serving as its chairman. The Department of Energy also approved its permit to deploy its first microreactors in Idaho in 2019, and the company recently broke ground on its first plant. However, it doesn't expect to complete those first deployments until late 2027 or early 2028. So for now, it isn't generating any revenue, and is racking up significant losses.
Oklo's bulls expect the company's sales to soar after it deploys its first microreactors. The rapid growth of the cloud infrastructure and artificial intelligence (AI) markets should also drive more companies toward newer nuclear energy solutions -- like microreactors -- to support their power-hungry data centers. According to an analysis by Zion Market Research, as those tailwinds continue to drive demand for electricity higher, the global microreactor market could expand at a compound annual rate of 19.1% from 2025 to 2034.
How is Nextracker expanding its niche in the solar industry?
Most solar panels are installed on fixed-tilt mounting systems set at an angle that will allow them to capture the most sunlight. Nextracker's solar tracking systems swivel, and are programmed to automatically follow the sun. That boosts the energy output of solar panels mounted on them by 15% to 25% compared to fixed panels. In 2024, Nextracker ranked first in the global solar tracking systems space with a 26% market share, according to Wood Mackenzie. Markets and Markets expects the global solar tracker market to continue expanding at a compound annual rate of 17.3% from 2024 to 2029 as more utility companies and enterprise customers adopt the technology to maximize the energy produced by their solar panels.
NASDAQ: NXT
Key Data Points
To widen its moat against its smaller competitors, Nextracker is investing in new AI and robotics technologies to strengthen its automated tracking abilities. It also acquired several adjacent players in its industry (with specializations in solar panel cleaning, solar frames, and 3D maps) over the past year, expanding its ecosystem.
From its fiscal 2022 to its fiscal 2025 (which ended in March), its revenue grew at a compound annual rate of 27%, from $1.46 billion to $2.96 billion. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at a compound annual rate of 103% from $92.3 million to $776.5 million. And its net income soared tenfold from $50.9 million to $509.2 million.
All of that robust growth was fueled by a renewed interest in solar power as cheaper solar modules and more generous government incentives reduced the costs of installing big solar systems. However, from fiscal 2025 to fiscal 2028, analysts expect Nextracker's revenue and adjusted EBITDA to grow at compound annual rates of 12% and 8%, respectively.
The better buy: Nextracker
Oklo has a lot of growth potential, but it already has a market cap of $19.36 billion -- or 1,383 times the $14 million in sales it's expected to generate in 2027 as it deploys its first microreactors. Nextracker, which is valued at $10.77 billion, trades at just 3 times this year's sales.
So for now, it makes more sense to invest in Nextracker, which has already proven that it can commercialize its products and scale up its business. Oklo might have a bright future, but I wouldn't touch its stock until it brings its first Aurora microreactor online.
