Nuclear power has moved back into the center of the energy conversation, and the reason is not hard to see. Data centers, artificial intelligence (‘AI’) workloads and industrial electrification all need steady electricity, not just intermittent power. This has created a fresh opening for companies building advanced nuclear systems. Oklo Inc. OKLO and NuScale Power SMR both sit inside this theme, but they approach the opportunity from different angles. OKLO is an ambitious, early-stage platform built around reactors, fuel and isotopes. SMR, meanwhile, has a stronger regulatory foundation and is trying to turn its small modular reactor technology into commercial deployments.
The Case for OKLO Stock
OKLO’s appeal starts with the size of the market it is chasing. The company is not simply trying to sell power. It is building a broader nuclear ecosystem that includes clean baseload generation, fuel supply and isotope production. Its Aurora reactor design is central to that plan, and the proposed 1.2-gigawatt Aurora-Ohio campus connected to Meta Platforms(META) gives the story a direct link to the fast-growing data-center power market.
Investors should know that AI infrastructure needs dependable electricity around the clock, and OKLO wants to position its reactors as a clean source of that supply. Its work with NVIDIA and Los Alamos National Laboratory adds another layer to the story, as the collaboration focuses on AI-enabled modeling, digital twins and nuclear fuel development. These relationships help strengthen OKLO’s credibility, even though the business is still in a very early stage.
Fuel is another important part of the investment case. OKLO is pursuing several pathways, including high-assay low-enriched uranium (HALEU)-related work, surplus material opportunities and long-term recycling plans. Its partnership with Centrus Energy for HALEU deconversion services and its work with newcleo around surplus plutonium could help reduce future fuel bottlenecks. The company is also investing in a fuel recycling facility in Tennessee, which could eventually support its advanced reactor fleet.
OKLO’s isotope business adds optional upside. The United States relies heavily on limited and aging isotope supply sources, while demand from medicine, industry and security applications continues to grow. OKLO’s Idaho Radiochemistry Laboratory and Groves Isotope Test Reactor are aimed at building a domestic supply chain over time.
The challenge is that most of this potential is still ahead, not in the numbers today. OKLO reported no revenues in the first quarter of 2026, although its loss was slightly narrower than expected. The company does have a strong liquidity position, with $2.5 billion in cash and marketable securities, but it remains in a capital-heavy development phase. Licensing, construction and commercialization risks remain significant.
The Case for SMR Stock
NuScale’s case is built less on future concept value and more on regulatory progress. The company has U.S. Nuclear Regulatory Commission approvals for its 50-megawatt and 77-megawatt reactor designs, giving it a meaningful lead over many advanced nuclear peers. Its small modular reactor design is also flexible. NuScale Power Modules can be used in different configurations and may serve utilities, data centers, industrial plants, desalination facilities, district heating projects and hydrogen production. This range gives the company several possible markets to pursue as electricity demand rises.
NuScale also benefits from using conventional low-enriched uranium (LEU). That is a practical advantage because LEU is already commercially available, while HALEU supply remains limited. For customers thinking about near-term deployments, fuel availability can be just as important as reactor design. NuScale’s supply-chain relationships with Framatome and Doosan Enerbility further support its readiness by improving access to fuel fabrication and key manufacturing capabilities.
The biggest potential catalyst is the TVA-ENTRA1 opportunity, which could involve up to 6 gigawatts of nuclear capacity using NuScale technology. If that project moves into firm agreements, it could become a major validation point. The RoPower project in Romania also keeps NuScale active internationally.
Still, the company is far from being risk-free. First-quarter 2026 revenues fell to $0.6 million from $13.4 million a year earlier, while losses widened. NuScale has yet to build a commercial reactor, and investors are still waiting for its regulatory edge to convert into recurring revenue. Financing needs, project timing and execution remain key concerns.
Price Performance
Both stocks have been weak, but SMR has seen a sharper fall. OKLO is down around 22% over the past six months, while SMR has declined around 33%. The bigger drop in NuScale reflects investor concern after weak results, but it may also make the risk-reward setup somewhat more balanced if commercialization progress improves.
Valuation
On a price-to-book basis, OKLO trades at around 4.5X, while SMR trades closer to 3.7X. OKLO carries the higher multiple, likely because investors are pricing in its wider platform opportunity. Even so, NuScale looks less expensive on this measure and has a clearer regulatory base to support that valuation.
EPS Estimates
The earnings outlook also favors SMR. The Zacks Consensus Estimate for NuScale Power points to 63% growth in 2026, followed by a 5% decline in 2027.
For OKLO, estimates indicate declines of 8% in 2026 and 16% in 2027. That makes SMR’s earnings trend look comparatively stronger.
Conclusion
Both OKLO and SMR carry a Zacks Rank #3 (Hold) each, so neither stock looks like an obvious aggressive buy right now. OKLO has a compelling long-term story tied to AI power demand, fuel recycling and isotopes, but its business model still needs proof. SMR also has execution risk, yet its NRC approvals, LEU fuel advantage, lower valuation and better earnings estimate profile make it look slightly better positioned at the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NuScale Power Corporation (SMR): Free Stock Analysis Report
Oklo Inc. (OKLO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).