Over recent years, the rapid expansion of the artificial intelligence (AI) sector has led a significant number of investors to focus on chipmakers such as Nvidia and software giants like Microsoft. Yet, this long-term trend is also generating powerful winds in favor of nuclear power companies that are tackling the escalating energy demands of these massive cloud and AI data centers.
Let us explore why two notable smaller nuclear energy firms frequently linked with the artificial intelligence sector, specifically NuScale Power (SMR) and Oklo (OKLO), might prosper during the AI expansion, and discuss which stock presents a more attractive investment opportunity at present.
The differences between NuScale and Oklo
Both NuScale and Oklo specialize in creating compact and scalable nuclear power plants. Specifically, NuScale concentrates on Small Modular Reactors (SMRs), each capable of producing up to 77 megawatts of electricity. These SMRs can be arranged in various configurations for convenient deployment, making them more flexible than conventional nuclear reactors.
The VOYGR-6 setup links together six out of its 77 megawatt electric (MWe) modules to produce a total output of 462 MWe, while the advanced VOYGR-12 configuration combines 12 modules to yield 924 MWe.
Among all companies, only NuScale has obtained Standard Design Approvals from the U.S. Nuclear Regulatory Commission (NRC) for its Small Modular Reactors (SMRs). Specifically, their 50 MegaWatt-electric (MWe) design received approval in January 2023, and their 77 MWe design was approved this May. Remarkably, the 77 MWe design occupies just 1% of the space compared to a standard nuclear reactor, yet it produces an equal amount of power.
Oklo’s primary product, the Aurora, is a compact microreactor producing about 1.5 Megawatts of power. Multiple small-scale microreactors like these can be connected to create larger outputs ranging from 15 Megawatts to 100 Megawatts, making them ideal for remote and off-grid settings due to their adaptable nature.
Oklo’s microreactors utilize dense, thermally resistant, and economical metallic uranium fuel pellets as opposed to the conventional uranium dioxide fuel pellets used by companies like NuScale. The advantage of these custom-made metallic pellets is their simplicity in being reprocessed and recycled within a closed system that can function for approximately ten years without needing refueling.
NuScale’s Small Modular Reactors require refueling every two years, yet thanks to their modular construction, they can be refueled progressively, ensuring that the entire facility remains operational without interruption.
Which company is growing faster?
The high density, adaptability, and energy efficiency of Small Modular Reactors (SMRs) and microreactors have sparked significant interest among energy corporations and data center operators demanding power. Yet, these entities may encounter growing challenges in the upcoming years.
In 2023, NuScale experienced a significant setback as escalating costs led to the cancellation of its project to construct six nuclear reactors in Idaho. Currently, a large portion of its income comes from work done in Romania, where it functions as a subcontractor for Fluor’s planned construction of a 462 MWe power plant. This project is still in the preliminary engineering and design stage, with predictions that it will secure a final investment decision by 2026.
The latest endorsement by the NRC on their 77 MWe design signifies a potential resurgence of NuScale within the United States. In fact, they’ve been engaging in negotiations with five major data center operators in the U.S., aiming to facilitate this comeback.
By the year 2024, NuScale’s income increased by a significant 62%, landing at approximately $37 million; however, the company’s net loss multiplied more than twice, amounting to $137 million. In the following year of 2025, analysts anticipate a further growth of 34% in NuScale’s income, reaching an estimated $50 million, while simultaneously predicting a reduction in their net loss to around $69 million.
The potential growth might stem from a significant investment decision in Romania, leading to the establishment of their initial plants and securing new domestic data center contracts. However, considering its current market capitalization of $6.7 billion, NuScale appears overvalued at approximately 135 times this year’s revenue.
Until Oklo deploys its reactors in Idaho, likely in late 2027 or early 2028, the company isn’t anticipated to bring in any income. Analyst predictions suggest that Oklo will incur net losses of approximately $66 million in 2025 and $78 million in 2026. Despite this, its current market value stands at a staggering $10.2 billion – a figure that surpasses the projected revenue for 2027 by over 762 times.
It’s likely that the stock is priced so highly due to its association with Sam Altman, who was both CEO and chairperson of OpenAI in the past. Today, Altman continues to be a significant investor in the company.
The better buy: NuScale
As a fervent advocate for sustainable energy solutions, I must admit that while the Small Modular Reactors (SMRs) from NuScale might not be as revolutionary as Oklo’s microreactors, they certainly have their unique strengths. These SMRs are perfectly designed for constructing sizeable nuclear power plants, potentially replacing outdated fossil fuel facilities. Moreover, they offer a direct power source for data centers and factories, which is a significant advantage.
Microreactors, on the other hand, excel in smaller-scale deployments, particularly in remote locations. However, when it comes to larger-scale power plants, their economics are not as favorable compared to the more substantial SMRs.
In simpler terms, while investing in NuScale is considered speculative, it seems more promising compared to Oklo, which appears excessively overpriced and hasn’t earned any significant income yet. Therefore, I anticipate that NuScale will continue to be a superior choice for those interested in nuclear power investments in the near future.
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2025-07-25 14:22