Small modular reactors (SMRs) are one of the most interesting developments in nuclear technology in the last few years. These pint-size power plants miniaturize nuclear power and can be built (at least in part) in a factory.
They could be a solution to the power demands of artificial intelligence (AI), as they can theoretically be used to power data centers without putting strain on the power grid or spiking energy prices.
With the International Energy Agency reporting that its baseline projection has AI doubling its power consumption worldwide by the end of the decade, we need a solution, and we need it fairly quickly.
Fortunately, there are several companies working on SMR technology, and Oklo (OKLO 4.97%) has emerged as one of the most interesting ones. However, it's not the one I'd put my money in.
Image source: Getty Images.
Liquid-cooled power
Oklo is not only developing SMR technology, its Aurora reactor is also a liquid-metal-cooled fast reactor. Instead of the water cooling of conventional nuclear power plants, Oklo's reactor uses liquid sodium to cool itself.
This offers some benefits over water-cooled reactors: Oklo's reactors are more fuel-efficient, can operate at much lower pressures than conventional reactors, and can manage heat more effectively.
NYSE: OKLO
Key Data Points
Oklo is also working on nuclear fuel recycling. About 95% of a "spent" uranium fuel rod can actually be reused. Oklo is investing $1.68 billion into a fuel recycling facility in Oak Ridge, Tennessee, that, once completed, will be the first of its kind in America.
However, while Oklo's technology is fascinating, the company has one serious problem I can't overlook: It generates no revenue right now and is hemorrhaging cash rapidly. In Q3 2025 alone, it had a $36.3 million loss from operations. I'm rooting for Oklo, but I can't bring myself to invest in it yet.
Instead, I think BWX Technologies (BWXT +1.17%) makes a compelling case for itself as an SMR investment.
The elder statesman
BWX Technologies has been in the business of miniaturizing nuclear power plants since the 1950s, when it worked on the USS Nautilus, the world's first nuclear-powered submarine. Since then, it has produced more than 400 ship-mounted nuclear reactors.
The company brings that mini-reactor expertise to bear in its prototype BWXT Advanced Nuclear Reactor (BANR), a 50-megawatt gas-cooled reactor that can be partially built in a factory and then put together and completed at its intended final location.
The BANR reactor is still a prototype, but the government has shown a lot of interest in BWX's small terrestrial reactors already. BWX is also working on Project Pele, an even smaller reactor that can generate 1.5 MW of power and be transported on a standard truck.
NYSE: BWXT
Key Data Points
And, unlike Oklo, BWX generates growing revenues and is rather profitable.
In 2025 BWX's saw its revenue grow 18% 2024, and its non-GAAP (adjusted) earnings per share (EPS) were up 20% over 2024. The company is also running a net income margin of 15% and grew its operating cash flow 17% in 2025 over 2024.
Finally, both Oklo's and BWX's SMRs are prototypes, and neither company is generating revenue from them. However, BWX is not solely focused on its SMR technology, which makes it the safer prospect for investing in miniaturized reactors.
