Small Modular Nuclear Plays Draw Investor Attention as AI Power Demand Grows

Advanced nuclear companies Oklo (NYSE: OKLO) and NuScale Power (NYSE: SMR) have become focal points in the debate over which firms stand to benefit from the enormous electricity needs of artificial intelligence data centers, but both remain years away from meaningful commercial revenue.

Oklo, which designs compact fission plants, is developing its Aurora Powerhouse, a reactor platform intended to generate between 15 and 75 megawatts of electricity. The company, classified in the independent power producers segment of the utilities sector, also aims to commercialize nuclear fuel recycling. Its modular approach allows deployment in remote or off-grid locations where conventional large reactors are impractical.

As of the latest trading session, Oklo shares changed hands at $41.27, up 3.33% from the prior close of $39.94, giving the company a market capitalization of roughly $6.76 billion. That valuation reflects significant anticipation: the company does not expect its first reactors to come online until 2027, and it has yet to book substantial revenue from deployments.

NuScale, meanwhile, takes a different route to the same market with its small modular reactor technology. Like Oklo’s microreactors, NuScale’s SMRs are considerably smaller than traditional nuclear plants and can be installed incrementally. The company reports some intermittent research-related revenue, but its first commercial SMRs are not expected to begin operating until the early 2030s — an even longer runway than Oklo’s.

The interest in both firms stems from a broader shift in the technology landscape. Hyperscale cloud providers and AI developers are hunting for reliable, carbon-free baseload power to feed energy-hungry data centers, and nuclear energy has re-emerged as a leading candidate after decades of limited new construction in the United States. That dynamic has pushed speculative nuclear developers into the spotlight even before their products reach the market.

Yet the gap between market enthusiasm and commercial reality remains wide. With first deployments years out, both companies’ current valuations rest heavily on execution: securing customers, navigating regulatory approvals from the Nuclear Regulatory Commission, and delivering on unproven designs at scale. Oklo’s billion-dollar-plus market cap, in particular, prices in substantial success before its first Aurora unit generates a megawatt-hour of revenue.

What to watch

• Progress toward Oklo’s first reactor deployment, targeted for 2027, including any customer agreements or regulatory milestones announced before then.
• NuScale’s timeline for its first commercial SMR installations in the early 2030s and interim contract announcements.
• Data center power partnership deals between nuclear developers and major cloud or AI operators.
• Upcoming earnings reports from both companies, which may clarify cash positions and spending ahead of first revenue.

Source: original release