Forget Oklo: This Nuclear Stock Could Be the Better Buy

On paper, Oklo (NYSE: OKLO) -- one of the most popular nuclear energy stocks on the market today -- has a very bright future.

Investment banks, consultants, and market analysts anticipated as much as $7 trillion in spending by 2030 to scale artificial intelligence (AI) data center infrastructure. Without this critical infrastructure, the AI industry will find it very difficult to grow as quickly as investors demand.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

A large chunk of that $7 trillion will be spent on materials and labor. Much of it, however, will be directed toward scaling the energy systems needed to power the data centers themselves. "Incumbents can't meet demand for power," according to a report from consulting firm McKinsey & Co. The need for more power, the firm concludes, will trigger "one of the largest infrastructure build-outs in modern history."

Sam Altman, the chief executive officer of OpenAI , recognized this challenge more than a decade ago. In 2015, he became an early investor in Oklo. Oklo's small modular reactor (SMR) designs are ideal for the rising energy needs of the AI industry. The company has already secured deals with big tech companies like Meta Platforms (NASDAQ: META).

There's just one problem: Oklo still isn't approved by regulators to commercialize any of its SMR designs. So although some of its deals have binding financial components, Oklo won't be able to execute on its customer pipeline until it receives the proper approvals. Oklo was denied by regulators in 2022 and later resubmitted its application in 2025. The application has been moving smoothly through the approval process, but the exact date for a potential full approval remains unknown.

As a business, Oklo is incredibly exciting. It has impressive industry backing, an influential investor base, and good odds of full regulatory approval. When it comes to Oklo as an investment, however, the situation is less clear. Oklo's $8 billion valuation is nearly twice that of another SMR competitor, which is approaching a critical milestone that probably will push its valuation above Oklo's.

This nuclear stock could have more near-term upside than Oklo

NuScale Power (NYSE: SMR) is very similar to Oklo. Both companies are pursuing the development of SMR technology. Both companies have an impressive customer pipeline. And both companies are benefiting from AI's rapidly rising demand for power.