When you think about utility companies, you probably don’t think about nuclear. But with the way the energy landscape is changing, one day you might think of nothing else.
The U.S. is already the world’s largest nuclear power producer, with about 30% of worldwide generation happening within its borders. The White House under Trump wants to quadruple this capacity by 2050, with advanced nuclear technology, like small modular reactors (SMRs), expected to become the workhorse of a new nuclear era.
Who knows: By 2030, we might even see the first-ever nuclear reactor deployed into space.
Whether that happens, it’s likely that nuclear power will expand its footprint on earth. The following nuclear energy stocks are must-haves for the next few decades of nuclear expansion.
1. Oklo
Oklo (OKLO +2.24%) is the poster child of “new nuclear.” The advanced nuclear company is developing a small fast reactor called Aurora which uses liquid metal coolant and runs on both fresh uranium and recycled nuclear waste fuel.
If none of that nuclear lingo makes sense, the gist of it is: Oklo wants to build a small reactor that can produce steady power without needing the enormous footprint or cost of a traditional nuclear power plant.
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(2.24%) $1.52
Current Price
$69.34
Market Cap
$12B
Day’s Range
$65.65 – $70.97
52wk Range
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Volume
189.1K
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12M
Emphasis there on “wants.” For a few years now, Oklo’s big idea has been stuck in a regulatory process notorious for moving slowly. The Nuclear Regulatory Commission (NRC) hasn’t awarded Oklo’s Aurora design with a license to operate commercially yet, nor is there a timeline for when such a license will be granted. As such, Oklo is burning cash, reporting a first-quarter net loss of roughly $33 million and living off its substantial $1.6 billion in cash and equivalents.
But things are moving, or so it seems. The company recently broke ground on its first powerhouse for the Idaho National Laboratory and announced potential partnerships with big names in tech, like Switch and Meta. Its recent acquisition of Atomic Alchemy could unlock a multibillion-dollar medical isotope market, possibly generating revenue before its reactors go online.
At this point, however, investors are paying big for the trailer of a movie whose release date is still a big question mark. Aggressive investors who believe nuclear is the future will likely be more willing to stomach the risk that comes with this early-stage nuclear hopeful.
2. NuScale Power
NuScale Power (SMR +3.98%) is often pitted against Oklo as a potential rival. There are some similarities: Like Oklo, NuScale wants to build small nuclear reactors, especially to help fill gaps expected from the power needs of artificial intelligence (AI) and their data centers.
But NuScale is different from its rival in some significant ways. First, it has achieved NRC approval for not just one but two small modular reactor (SMR) designs: a 50-megawatt (MW) design and an upgraded 77-MW design. NuScale remains the only U.S. nuclear company that has pulled off regulatory approval for an SMR.
Image source: Getty Images.
The second difference is in the clients both companies are targeting. While there might be some overlap, NuScale’s reactors are better designed for utility companies and big infrastructure projects, making them better tailored for large-scale deployments. NuScale’s potential 6-gigawatt project with the Tennessee Valley Authority highlights the scale to which its reactors could reach.
Oklo, on the other hand, seems like a better fit for smaller or one-off projects that require fewer reactors or less power, such as those used by data centers.
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Current Price
$12.55
Market Cap
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Volume
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29.3M
Gross Margin
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Still, although NuScale beat Oklo to the regulatory punch, it’s not generating significant revenue, nor has it punched in its first firm sale. It’s not hard to imagine why: An SMR project might be smaller than a traditional plant, but it’s still a huge years-long commitment, and utilities don’t exactly buy reactors like you or I might buy a new phone.
In sum, what Oklo has (the big clients), NuScale lacks, and what NuScale has (the NRC-approved SMR design), Oklo lacks. As such, the near term for both will be extremely volatile, as they address the problems in their businesses. Long term, however, both stocks have immense potential to explode in value, especially if power-hungry data centers continue to be built.