Key Points in This Article:
SMRs offer scalable, clean energy solutions ideal for powering AI data centers.
NuScale (SMR) and Oklo (OKLO) lead SMR development, with NuScale generating revenue and Oklo focusing on innovative fuel recycling.
Larger competitors like Westinghouse and GE Hitachi are in the race, but NuScale and Oklo are closer to deployment.
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The Rise of Small Modular Reactors
Small modular reactors (SMRs) are transforming the energy landscape, offering a compact, scalable solution to meet the world’s growing demand for clean, reliable power. Unlike traditional nuclear plants, SMRs are smaller, factory-built, and designed for flexibility, making them ideal for diverse applications, from remote communities to industrial hubs.
Their promise lies in delivering carbon-free energy with enhanced safety and lower costs, positioning them as a cornerstone for sustainable energy transitions. The surge in artificial intelligence (AI) data centers, which require immense, uninterrupted power, has spotlighted SMRs as a game-changer.
As global energy needs escalate, particularly for AI-driven technologies, SMRs are poised to bridge the gap between renewable energy’s intermittency and fossil fuels’ environmental toll. Companies like NuScale Power (NYSE:SMR) and Oklo (NYSE:OKLO) are leading this charge, racing to deploy innovative reactor designs to power the future.
A Competitive Landscape in SMR Innovation
NuScale Power and Oklo are at the forefront of the SMR revolution, each with distinct approaches to next-generation nuclear energy.
NuScale focuses on light-water SMRs that produce up to 77 megawatts per module, with configurations scalable to 924 megawatts, approved by the U.S. Nuclear Regulatory Commission (NRC). Conversely, Oklo develops microreactors — like its 75-megawatt Aurora powerhouse — using recycled nuclear fuel for efficiency and sustainability.
While NuScale and Oklo are trailblazers, they face competition from larger, well-funded players like Westinghouse Electric and GE Hitachi Nuclear Energy, which are also advancing SMR technologies. However, NuScale and Oklo stand out for their advanced development stages and near-term deployment timelines, making them compelling investment opportunities in the rapidly evolving nuclear energy sector.
NuScale Power: A Revenue-Generating Trailblazer
NuScale Power is a leader in SMR technology, distinguished by its NRC-approved designs, a significant milestone that sets it apart. Its modular reactors, which can be chained for scalable output, are designed for quick deployment, with a 36-month construction timeline — a stark contrast to traditional nuclear plants.
SMR is already generating revenue through projects like RoPower in Romania, reporting an 857.1% year-over-year revenue surge in the first quarter. Despite ongoing operating losses due to supply-chain investments, NuScale’s $600 million in Department of Energy funding and a robust cash position provide financial flexibility.
Its valuation, with a price-to-book ratio of 9.6X, is very attractive compared to peers. With active discussions with U.S. hyperscalers for AI data center power, NuScale’s near-term revenue potential and regulatory edge make it a strong contender for investors eyeing SMR growth.
Oklo: Betting on Innovation and Future Growth
Oklo is pushing the boundaries of nuclear technology with its Aurora microreactors, designed to deliver 75 megawatts of power using recycled nuclear fuel. This approach reduces waste and fuel costs by up to 80%, offering a competitive edge in an industry plagued by high operating expenses.
Backed by tech luminaries like Sam Altman, Oklo has secured strategic partnerships with companies like Equinix (NASDAQ:EQIX) for data center power. However, Oklo remains pre-revenue, with its first reactor not expected until 2027 or 2028, and it reported a $17.9 million operating loss in Q1.
Its high valuation, with a price-to-book ratio of 38X, reflects market optimism but also investor risk. Oklo’s recent Department of Defense contract for an Alaska project signals strong potential, but its lack of current revenue makes it a speculative play.
Verdict: NuScale or Oklo?
NuScale Power emerges as the stronger investment choice due to its current revenue stream, NRC approvals, and more favorable valuation. Its progress in Romania and potential U.S. data center contracts position it for near-term growth, despite ongoing losses.
Oklo, while innovative, faces a longer road to commercialization, with at least two to three years before revenue generation. However, its focus on fuel recycling and tech sector partnerships makes it a compelling long-term bet.
Yet investors don’t need to choose one over the other — buying both SMR and OKLO stock could capture the diverse upside of the SMR market, balancing immediate traction with future innovation. As AI-driven energy demand surges, both companies are well-placed to benefit, but NuScale’s head start makes it the safer pick for now.
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