Better Nuclear Energy Stock: NuScale Power vs. Oklo

Over the past few years, the explosive growth of the artificial intelligence (AI) market drove many investors toward chipmakers Nvidia and software giants Microsoft

However, that secular trend is also stirring up strong tailwinds for nu power companies that are addressing the soaring energy needs of those big cloud and AI data centers, amid market uncertainty

On the other hand, Additionally, Two smaller nu energy companies often associated with the AI market are NuScale Power (SMR -0 (noteworthy indeed)

Let's see why these two companies could benefit from the AI boom -- and which stock is the better buy right now

Image source: Getty Images

The differences between NuScale and Oklo NuScale and Oklo both duce smaller and scalable nu reactors

NuScale develops small modular reactors (SMRs), which each generate up to 77 megawatts of electricity (MWe)

In contrast, It chains together those modules in flexible configurations that are easier to deploy than traditional nu reactors

On the other hand, NuScale is the only company that holds Standard Design Apvals from the U

Nu Regulatory Commission (NRC) for its SMRs

On the other hand, Oklo's flagship duct, the Aurora, is a much smaller microreactor that only generates 1. 5 MWe of power, in today's financial world

Oklo's microreactors run on metallic uranium fuel pellets -- which are denser, more thermal resistant, and cheaper to make than the standard uranium dioxide fuel pellets used by NuScale and other reactor makers, in this volatile climate

Its fabricated metallic pellets are also easier to recess and recycle in a closed loop that can operate for a decade without being refueled

Conversely, NuScale's SMRs need to be refueled every two years, but their modular design allows them to be fueled in stages so the entire plant doesn't go offline

Which company is growing faster

The analysis reveals density, scalability, and power efficiency of SMRs and microreactors are attracting a lot of attention from energy companies and power-hungry data center operators

Conversely, However, both of these companies could struggle with growing pains over the next few years

In contrast, The NRC's recent apval of its 77 MWe design also opens the door for NuScale's stateside comeback

It has already been holding active discussions with five hyperscale data center operators in the U

To support that return

That growth could be driven by the final investment decision in Romania, which would pave the way toward the construction of its first plants, and new domestic data center contracts

On the other hand, The s bably trades at that frothy valuation because Sam Altman, the CEO of OpenAI, previously served as its CEO and chairman

Altman remains one of the company's top investors, in light of current trends

What the re reveals is better buy: NuScale The SMRs from NuScale might not be as forward-thinking as Oklo's microreactors, but they're well-suited for building big nu plants that could replace older fossil fuel plants (noteworthy indeed)

They can also be used to directly power data centers and factories

Microreactors are ideal for small deployments in remote areas, but they're not economical for larger-scale power plants

NuScale is still a speculative investment, but it's on firmer ground than Oklo -- which still looks grossly overvalued and hasn't generated a dollar of meaningful revenue yet

Moreover, That's why I expect NuScale's stock to remain a better play on nu power than Oklo for the foreseeable future (something worth watching).