Nuclear power may be an answer to the energy bottlenecks created by artificial intelligence (AI), but that's not reflected in the stock prices of Oklo (OKLO +0.28%) or NuScale Power (SMR +0.89%).
As of this writing, shares of Oklo have dipped 45% so far in 2026, while NuScale's stock price is down 37%. Neither company has commercial operations, so investing in either is about the promise of what could be offered through the deployment of their small modular reactors (SMRs).
Let's assess that promise -- and whether or not investors should jump in.
Image source: The Motley Fool.
The promise of SMR technology
SMRs offer several benefits over traditional nuclear reactors, including placement flexibility, greater scalability, and enhanced safety, according to the Department of Energy.
It is currently, however, a small market, as companies like Oklo and NuScale are working on getting those reactors up and running. In 2025, the global SMR market was valued at just $6.5 billion, according to Grand View Research. But as energy needs from data centers continue to grow, and SMRs become commercialized, the market size can easily expand.
According to research from The Motley Fool:
U.S. data centers consumed an estimated 177 to 192 terawatt-hours (TWh) of electricity in 2024 -- roughly 4% to 5% of all U.S. electricity -- and could consume 9% to 17% by 2030 under scenarios developed by the Electric Power Research Institute (EPRI).
This is a classic find-a-problem (energy needs), offer-a-solution (nuclear power) setup; it's just a matter of when either company meets those AI energy needs.
The better investment
Without commercial operations, what people are essentially paying for is the future potential of both companies, which is more suited for aggressive investors. That said, between the two, I would rather own Oklo.
It stands out because of the vertically integrated setup it's establishing, giving it a unique edge in the growing nuclear energy sector. Instead of specializing in one part of the process, Oklo plans to do everything from fuel fabrication to selling power and heat to recycling fuel, creating a loop for consistent power generation.
Even though it's not yet operational, Oklo has a deal with Meta Platforms under which the tech giant can prepay for power and provide funding for its reactor project in Ohio. The reactor is expected to be running by 2030 and provide its full power target by 2034. As of the end of the second quarter of 2026, Oklo has $3 billion in cash, cash equivalents, and marketable securities to fund its endeavors.
In comparison, NuScale acts more as an equipment and technology provider. While that limits some of the risks and barriers involved with the vertically integrated model Oklo is following, it can also reduce revenue opportunities, as Oklo can generate more reliable revenue by selling power and heat directly.
NYSE: SMR
Key Data Points
In addition, I'd give Oklo an edge with the deal already established with Meta Platforms, as it could open many doors if it proves successful. Finally, Oklo also has more cash at its disposal ($3 billion), as NuScale has $1.9 billion in cash, cash equivalents, and investments.
What's ahead for Oklo?
For Oklo, the stock price is approaching its 52-week low of $36.61. Some investors may think Oklo has been oversold if it gets close to $36 and step in to buy shares. It could also just as easily trigger more selling and send the stock price lower, as other investors may not see any catalysts on the horizon to reverse the losses. Either way, the near-term results are likely to be a bit choppy.
NYSE: OKLO
Key Data Points
Looking a bit further out, however, analysts collectively have a favorable median one-year price target for Oklo. Of the 21 analysts covering the stock, the median one-year price target is $80, according to CNN. From the Aug. 31 closing price of $40.57, hitting that $80 price target would represent a gain of about 97%.
To illustrate what an investment would look like if it hit that target, investing $5,000 in Oklo at $40.57 would yield a little more than 123 shares with fractional investing. If it were to reach $80 per share, that $5,000 investment would be worth approximately $9,859. While that's not a guarantee of what will happen, price targets can help gauge sentiment about a stock and help set a risk-to-reward framework.
For Oklo, that framework looks appealing, which could warrant a small stake for those comfortable with the risks and challenges the nuclear energy company still faces.
