Analysis of Oklo and NuScale Small Modular Reactor Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Financial Strength: Oklo boasts $2.5 billion in cash and marketable securities, providing a robust balance sheet that supports its future growth despite not yet being profitable, ensuring its competitive edge in the nuclear energy market.
- Market Outlook: Oklo aims to deploy its Aurora microreactor by the end of 2027, targeting data centers and industrial facilities, which is expected to drive growth in its market share within the nuclear sector.
- Competitive Advantage: NuScale is the only small modular reactor manufacturer with design certification from the U.S. Nuclear Regulatory Commission; however, it faces a class action lawsuit related to its partnership with ENTRA1 Energy, which raises concerns among investors.
- Investment Risks: While both Oklo and NuScale stocks have experienced volatility over the past year, Oklo is viewed as the safer investment option due to its debt-free status and high-profile partners like Meta Platforms, whereas NuScale's legal issues increase investment risks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy OKLO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on OKLO
Wall Street analysts forecast OKLO stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 67.820
Low
90.00
Averages
125.11
High
175.00
Current: 67.820
Low
90.00
Averages
125.11
High
175.00
About OKLO
Oklo Inc. is an advanced nuclear technology company. The Company is engaged in developing fast fission power plants to provide clean, reliable, and affordable energy at scale. It is developing advanced fuel recycling technologies in collaboration with the United States Department of Energy and United States National Laboratories. It provides 24/7 clean energy to data centers, factories, industrial sites, communities, and defense facilities. It offers heat and power through power purchase agreements. Its powerhouse product line, Aurora, is designed to be inherently safe, to be able to run on fresh or recycled fuel, and to produce 15-50 megawatts electric (MWe) and with the potential to expand powerhouse size to produce 100 MWe of electricity. The Company intends to develop specialized radioisotope production capabilities to address urgent supply shortages in life-saving medical radioisotopes and advanced industrial applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oklo Selected for U.S. Plutonium Fuel Program, Stock Surges
- Stock Surge: Oklo's stock soared 7.5% on Tuesday morning after the announcement that it was selected by the U.S. Department of Energy to negotiate participation in the Surplus Plutonium Utilization Program, reflecting strong market confidence in its future potential.
- Partnership for New Reactors: Oklo is partnering with European developer newcleo to build plutonium-fueled nuclear reactors, which not only helps reduce nuclear waste but also provides electricity to support the artificial intelligence revolution, showcasing its strategic positioning in the clean energy sector.
- Fuel Supply Solution: CEO Jacob DeWitte emphasized that fuel supply constraints are a major throttle to advanced reactor development, and this program creates a pathway to utilize existing surplus material as bridge fuel, thereby accelerating the deployment of more reactors.
- Long-Term Revenue Outlook: While today's news may take years to translate into actual revenue, Oklo's involvement signifies strategic progress in the nuclear energy sector, potentially laying the groundwork for future growth.
See More
Oklo Partners with Idaho Lab to Advance AI-Enabled Reactor Design
- Strategic Partnership: Oklo has announced a collaboration with the Idaho National Laboratory (INL) to leverage AI technologies aimed at accelerating advanced reactor and fuel system design work, which is expected to enhance efficiency and innovation within the nuclear sector.
- AI-Enabled Design: The project intends to bolster the conceptual design of Oklo's reactor systems through AI-driven engineering workflows, modeling, simulation, and technical documentation, indicating a supportive role for AI rather than complete autonomy in the design process.
- Industry Context: While Oklo's initiative may not be groundbreaking, it reflects the broader trend of AI integration across various sectors, potentially attracting interest from shareholders focused on nuclear energy investments.
- Market Outlook: Although AI could expedite the design process, the critical question remains whether Oklo can transform its reactor designs into a sustainable power generation business, with stock prices likely to remain volatile in the near term, necessitating careful risk assessment by investors.
See More
NuScale vs. Oklo: A Comparison of Nuclear Energy Investment Prospects
- NuScale's Market Positioning: NuScale Power focuses on developing small modular reactor technology targeting markets like data centers and desalination plants; although it hasn't commercialized yet, it holds $341 million in cash and short-term investments, indicating financial stability.
- Oklo's Business Model: Oklo is building fast-fission power plants and has secured prepayment agreements with Meta and Equinix, demonstrating its appeal to high-demand users, while boasting over $2 billion in cash, providing robust support for future growth.
- Risk Analysis: NuScale faces risks from not having signed binding contracts, leading to uncertain future revenues, and must compete against large state-owned enterprises, while Oklo encounters complex challenges in construction and regulatory approvals, with both companies yet to achieve profitability.
- Valuation Comparison: NuScale's forward P/E ratio stands at 141.6x, reflecting its non-profitable status, while Oklo is valued based on future earnings estimates, showcasing market confidence in its potential.
See More
Analysis of Small Modular Reactor Market Competition
- Market Positioning Differences: NuScale Power is the only small modular reactor design to receive U.S. regulatory certification, focusing on providing carbon-free electricity to traditional utilities and industrial clients, while Oklo targets high-demand users like data centers through fast-fission plants and a unique fuel recycling business model, highlighting significant differences in their market positioning.
- Financial Comparison: NuScale ended the first quarter with $341 million in cash and cash equivalents and $836 million in short-term investments, facing milestone payment risks with ENTRA1 Energy despite not yet commercializing; in contrast, Oklo boasts over $2 billion in cash reserves, showcasing greater financial flexibility, although both companies are pre-revenue.
- Impact of Partnerships: Oklo has secured prepayment agreements with major tech firms like Meta Platforms and Equinix, along with a master power agreement with Switch for 12 GW of capacity, enhancing market confidence; in comparison, NuScale's commercialization partnerships are more limited, increasing uncertainty about its future revenue.
- Technological Progress and Challenges: Oklo aims to achieve criticality at its Groves Isotope Test Reactor in Texas by July 4 and is making strides in nuclear fuel recycling, demonstrating its technological edge; meanwhile, NuScale faces competition from large state-supported entities like China National Nuclear Corporation and risks regarding the competitiveness of its electricity costs.
See More
Newcleo to Go Public via Merger with NewHold Investment Corp III
- Merger Announcement: Nuclear energy company Newcleo has entered into a merger agreement with NewHold Investment Corp III, valuing the company at $2.4 billion and expected to provide up to $429 million in gross proceeds, reflecting strong market confidence in the future of nuclear energy.
- Technological Collaboration: Newcleo will partner with Oklo Inc. to utilize surplus plutonium from the Cold War era as nuclear reactor fuel, showcasing its expertise in the fuel cycle and potentially advancing nuclear energy applications in data centers and artificial intelligence.
- Funding Achievement: Since its founding in 2021, Newcleo has raised approximately $780 million from private investors, including the Agnelli family's Exor Seeds venture capital fund, indicating broad investor recognition of its business model and technology.
- Growing Market Demand: In the United States, nuclear energy is viewed as a promising solution to meet the increasing power demands of data centers and artificial intelligence, and Newcleo's public listing is expected to enhance its competitiveness in this rapidly evolving market.
See More
NNE Acquires Nuclear Logistics Firm STS for $13 Million
- Deal Overview: NNE has acquired the specialized nuclear logistics firm STS for a total consideration of $13 million, comprising $6 million in cash and $7 million in shares, which will enhance NNE's vertical integration in the nuclear energy sector and improve its capabilities in transporting nuclear fuel and reactor components.
- Financial Performance: STS reported approximately $7.1 million in revenue and $1.3 million in net income for 2025, demonstrating its profitability in the nuclear transport sector, and is expected to provide NNE with significant long-term growth opportunities, particularly as demand for advanced reactors and HALEU fuel transport rises.
- Market Reaction: Following the acquisition announcement, NNE's shares surged nearly 9% and continued to climb in subsequent trading sessions, indicating a positive market response, while retail investor discussions on Stocktwits increased by 146%, reflecting strong bullish sentiment towards NNE.
- Competitive Advantage: This acquisition not only grants NNE access to STS's experience in completing nuclear transport projects in over 40 countries and approvals covering 90% of active U.S. Nuclear Regulatory Commission spent fuel routes but also establishes a solid foundation for future business growth, creating an operational moat in the nuclear supply chain.
See More
Oklo Selected for U.S. Plutonium Fuel Program, Stock Surges
- Stock Surge: Oklo's stock soared 7.5% on Tuesday morning after the announcement that it was selected by the U.S. Department of Energy to negotiate participation in the Surplus Plutonium Utilization Program, reflecting strong market confidence in its future potential.
- Partnership for New Reactors: Oklo is partnering with European developer newcleo to build plutonium-fueled nuclear reactors, which not only helps reduce nuclear waste but also provides electricity to support the artificial intelligence revolution, showcasing its strategic positioning in the clean energy sector.
- Fuel Supply Solution: CEO Jacob DeWitte emphasized that fuel supply constraints are a major throttle to advanced reactor development, and this program creates a pathway to utilize existing surplus material as bridge fuel, thereby accelerating the deployment of more reactors.
- Long-Term Revenue Outlook: While today's news may take years to translate into actual revenue, Oklo's involvement signifies strategic progress in the nuclear energy sector, potentially laying the groundwork for future growth.
See More
Oklo Partners with Idaho Lab to Advance AI-Enabled Reactor Design
- Strategic Partnership: Oklo has announced a collaboration with the Idaho National Laboratory (INL) to leverage AI technologies aimed at accelerating advanced reactor and fuel system design work, which is expected to enhance efficiency and innovation within the nuclear sector.
- AI-Enabled Design: The project intends to bolster the conceptual design of Oklo's reactor systems through AI-driven engineering workflows, modeling, simulation, and technical documentation, indicating a supportive role for AI rather than complete autonomy in the design process.
- Industry Context: While Oklo's initiative may not be groundbreaking, it reflects the broader trend of AI integration across various sectors, potentially attracting interest from shareholders focused on nuclear energy investments.
- Market Outlook: Although AI could expedite the design process, the critical question remains whether Oklo can transform its reactor designs into a sustainable power generation business, with stock prices likely to remain volatile in the near term, necessitating careful risk assessment by investors.
See More
NuScale vs. Oklo: A Comparison of Nuclear Energy Investment Prospects
- NuScale's Market Positioning: NuScale Power focuses on developing small modular reactor technology targeting markets like data centers and desalination plants; although it hasn't commercialized yet, it holds $341 million in cash and short-term investments, indicating financial stability.
- Oklo's Business Model: Oklo is building fast-fission power plants and has secured prepayment agreements with Meta and Equinix, demonstrating its appeal to high-demand users, while boasting over $2 billion in cash, providing robust support for future growth.
- Risk Analysis: NuScale faces risks from not having signed binding contracts, leading to uncertain future revenues, and must compete against large state-owned enterprises, while Oklo encounters complex challenges in construction and regulatory approvals, with both companies yet to achieve profitability.
- Valuation Comparison: NuScale's forward P/E ratio stands at 141.6x, reflecting its non-profitable status, while Oklo is valued based on future earnings estimates, showcasing market confidence in its potential.
See More
Analysis of Small Modular Reactor Market Competition
- Market Positioning Differences: NuScale Power is the only small modular reactor design to receive U.S. regulatory certification, focusing on providing carbon-free electricity to traditional utilities and industrial clients, while Oklo targets high-demand users like data centers through fast-fission plants and a unique fuel recycling business model, highlighting significant differences in their market positioning.
- Financial Comparison: NuScale ended the first quarter with $341 million in cash and cash equivalents and $836 million in short-term investments, facing milestone payment risks with ENTRA1 Energy despite not yet commercializing; in contrast, Oklo boasts over $2 billion in cash reserves, showcasing greater financial flexibility, although both companies are pre-revenue.
- Impact of Partnerships: Oklo has secured prepayment agreements with major tech firms like Meta Platforms and Equinix, along with a master power agreement with Switch for 12 GW of capacity, enhancing market confidence; in comparison, NuScale's commercialization partnerships are more limited, increasing uncertainty about its future revenue.
- Technological Progress and Challenges: Oklo aims to achieve criticality at its Groves Isotope Test Reactor in Texas by July 4 and is making strides in nuclear fuel recycling, demonstrating its technological edge; meanwhile, NuScale faces competition from large state-supported entities like China National Nuclear Corporation and risks regarding the competitiveness of its electricity costs.
See More
Newcleo to Go Public via Merger with NewHold Investment Corp III
- Merger Announcement: Nuclear energy company Newcleo has entered into a merger agreement with NewHold Investment Corp III, valuing the company at $2.4 billion and expected to provide up to $429 million in gross proceeds, reflecting strong market confidence in the future of nuclear energy.
- Technological Collaboration: Newcleo will partner with Oklo Inc. to utilize surplus plutonium from the Cold War era as nuclear reactor fuel, showcasing its expertise in the fuel cycle and potentially advancing nuclear energy applications in data centers and artificial intelligence.
- Funding Achievement: Since its founding in 2021, Newcleo has raised approximately $780 million from private investors, including the Agnelli family's Exor Seeds venture capital fund, indicating broad investor recognition of its business model and technology.
- Growing Market Demand: In the United States, nuclear energy is viewed as a promising solution to meet the increasing power demands of data centers and artificial intelligence, and Newcleo's public listing is expected to enhance its competitiveness in this rapidly evolving market.
See More
NNE Acquires Nuclear Logistics Firm STS for $13 Million
- Deal Overview: NNE has acquired the specialized nuclear logistics firm STS for a total consideration of $13 million, comprising $6 million in cash and $7 million in shares, which will enhance NNE's vertical integration in the nuclear energy sector and improve its capabilities in transporting nuclear fuel and reactor components.
- Financial Performance: STS reported approximately $7.1 million in revenue and $1.3 million in net income for 2025, demonstrating its profitability in the nuclear transport sector, and is expected to provide NNE with significant long-term growth opportunities, particularly as demand for advanced reactors and HALEU fuel transport rises.
- Market Reaction: Following the acquisition announcement, NNE's shares surged nearly 9% and continued to climb in subsequent trading sessions, indicating a positive market response, while retail investor discussions on Stocktwits increased by 146%, reflecting strong bullish sentiment towards NNE.
- Competitive Advantage: This acquisition not only grants NNE access to STS's experience in completing nuclear transport projects in over 40 countries and approvals covering 90% of active U.S. Nuclear Regulatory Commission spent fuel routes but also establishes a solid foundation for future business growth, creating an operational moat in the nuclear supply chain.
See More
