NuScale Power SMR and Okay, hey OKLO are both major companies in the nuclear power industry. NuScale Power focuses on building small modular reactors for clean energy projects. Oklo focuses on developing next-generation fission power plants and compact fast reactors that can recycle spent nuclear fuel.
According to a report by Fortune Business Insights, the global small modular reactor market was valued at $5.81 billion in 2024 and is expected to reach $8.37 billion by 2032, witnessing a CAGR of approximately 4.98% from 2025 to 2032. Both NuScale Power and their Toklo technologies can help meet the growing demand as their technologies can benefit from this increase. reliable and carbon-free nuclear power.
However, from an investment standpoint, one stock offers a more favorable outlook than the other right now. Let’s look at their fundamentals, growth prospects, market challenges and valuation to determine which stocks offer a more compelling investment case.
NuScale Power advances the small modular reactor market. The company is still the only small modular reactor supplier with US Nuclear Regulatory Commission (NRC) design approval, giving it a clear advantage over other players. NuScale Power also received approval for its 77 MW ramp-up, which strengthens its product and is important for customers who need more reliable power.
A key development is the 6 GW plan announced by ENTRA1 and the Tennessee Valley Authority (TVA). This is the largest small modular reactor program announced in the United States and represents 72 modules in up to six plants. NuScale Power said it already has 12 modules in production for the first project. TVA management has also publicly shown that they want new nuclear power.
The US-Japan Framework Agreement is a major positive for NuScale Power. Under this agreement, NuScale Power and ENTRA1 were the only group named to develop energy for AI, which shows strong support at the government level. In the third quarter of 2025, management said ENTRA1 could receive up to $25 billion to help develop core energy projects. This support is aimed at meeting the growing demand for power in AI data centers, advanced manufacturing and national defense, which bodes well for the company’s outlook.
NuScale Power is also progressing its work on the RoPower project, which aims to implement a power plant with 6 NuScale power modules in Romania. Phase 2 Fluor of the front-end engineering design study project for the RoPower plant in Doicești is close to completion and brings steady income.
However, the company faces several risks. NuScale Power’s revenue is still very low, with $8.2 million reported for the third quarter of 2025. The company also paid $128.5 million to ENTRA1 during the third quarter as part of its landmark agreement. Furthermore, management said total payments for all six TVA projects could reach several billion dollars before NuScale Power receives any equipment orders.
Another key risk is that the VAT agreement is not yet a binding power purchase agreement (PPA) and delays in signing PPAs could push orders and revenues. In addition, the project timelines are long, with the first plant expected around 2030, indicating that significant revenues are still several years away.
Oklo is working to expand its presence in the small modular reactor market by building a model that can scale beyond a single project. The company is positioning its first Aurora reactor at the Idaho National Laboratory as a starting point for a wider rollout of similar reactors in the future. In the third quarter of 2025, management described this first plant as a template that can be repeated at multiple sites.
A key part of Oklo’s expansion strategy is the use of the US Department of Energy (DOE) permitting pathway. This allows Oklo to begin building and operating the reactor under DOE supervision before obtaining full approval from the NRC. This helps Oklo move faster, reduce delays and collect real operational data. This data can then be used to support approvals for future small modular reactors. This approach is meant to reduce delays and lower risk as the company grows.
Oklo is also expanding its small module reactor footprint by running more than one reactor program at the same time. In addition to the Aurora reactor, the company is advancing the Pluto test reactor for fuel and component testing and supporting the Atomic Alchemy reactor for isotope production. These projects help Oklo improve its technology, gain operating experience and support future deployments of small modular reactors.
Fueling is another area of interest. Oklo is investing in fuel manufacturing and recycling facilities, including a planned advanced fuel center in Tennessee. This is meant to support many reactors over time and reduce dependence on external fuel suppliers.
On the demand side, in the third quarter of 2025, Oklo said it has a customer pipeline of about 14 gigawatts. Most of this interest comes from data centers that need constant and reliable power. Overall, Oklo is taking steps to build a larger and more scalable position in the small modular reactor market.
The Zacks Consensus Estimate for NuScale Power’s bottom line in 2025 is pegged at a loss of $1.64 per share. The current estimate is up from a loss of 46 cents estimated 60 days ago. NuScale Power reported earnings of 42 cents per share in 2024.
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For 2025, the Zacks Consensus Estimate for Oklo’s bottom line is pegged at a loss of 61 cents per share, which has increased by 3 cents over the past 30 days. Oklo reported a loss of 74 cents per share in 2024.
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Over the past six months, shares of NuScale Power have fallen 59.7%, while shares of Oklo have risen 24.7%.
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On a 12-month price/book basis, NuScale Power shares are trading at 10.8X, higher than Oklo’s 9.3X. NuScale Power seems expensive compared to Oklo. Conversely, Oklo’s reasonable valuation makes it more attractive to investors looking for value and stability.
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Both NuScale Power and Oklo are poised to benefit from the nuclear power boom. NuScale Power has important technological advantages and major long-term project announcements, but its revenues remain very low, project timelines are long and key agreements are not yet firm.
Instead, Oklo is building a model that can scale more quickly. It is moving forward with several reactor programs, working on its own fuel supply and seeing strong interest from data center customers. Moreover, the company’s reasonable valuation makes the stock look more attractive.
Oklo has a Zacks Rank #3 (Hold), making it a clear winner over NuScale Power, which currently has a Zacks Rank #5 (Strong Sell).
You can see full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article was originally published on Zacks Investment Research (zacks.com).
