Oklo (OKLO 3.43%) and NuScale Power (SMR 2.63%) are two of the most exciting names in nuclear technology.
On one side is Oklo, a nuclear start-up developing a micro reactor that can deliver clean, continuous energy for a decade or more without refueling. Its reactors can use both recycled and advanced nuclear fuel, which could make the process cheaper and more efficient.
NYSE: OKLO
Key Data Points
Backed early by Sam Altman -- and currently partnered with the U.S. Department of Energy and several data center companies -- Oklo has positioned its factory-assembled reactors as a potential solution to AI's surging power demands.
Image source: Oklo.
On the other side is NuScale. Like Oklo, NuScale has a small modular reactor (SMR) that's assembled in a factory and can be deployed wherever power is needed. Unlike Oklo, which still lacks the regulatory approval to operate its reactors commercially, NuScale has received an NRC design certification for one of its reactor design. It also generates a small amount of revenue, while Oklo still lacks sales.
NYSE: SMR
Key Data Points
The NRC design certification has given NuScale first-mover advantage in a hot new market. NuScale, however, has yet to deploy an SMR for a commercial customer, nor is it clear when it will ink a firm sale. The company is burning cash and reporting heavy losses.
OKLO Net Income (TTM) data by YCharts
Oklo carries a $10 billion market cap, while NuScale's is half of that at roughly $4.3 billion.
Both nuclear stocks are high-risk, high-reward, but I think Oklo will have more opportunity to win over the long term. Oklo's microreactor design is much smaller than NuScale's, producing about 15 megawatts of electricity (it also has larger units that can produce 50 MW and 75MW of power). NuScale's modules, on the other hand, produce 50MW or 77MW each. In plain terms, Oklo's smaller sized reactor could make its design more flexible, drawing in customers who need continuous power but don't need 50 MW.
Oklo has also diversified its business with the acquisition of Atomic Alchemy, which lets it expand into radioisotopes for near-term revenue. It's also progressing through the NRC's licensing process and is targeting 2027 as the start date to its commercial operations.
Both stocks will be volatile in the near term. But if riches are to be gained long-term, I think Oklo will be the growth stock to do it.
