What Is the Best Nuclear Reactor Stock You Should Put $1,000 Into in 2026?

Nuclear energy has staged an impressive comeback. After decades in which building new reactors in the U.S. seemed sluggish and expensive, surging electricity demand from artificial intelligence (AI), data centers, and electrification have all at once made good ol' dependable nuclear one of the energy sectors' most promising commodities.

That, in itself, has created no shortage of nuclear energy stocks for investors to pick from today. Plenty of companies are vying for a slice of the new nuclear space, some more far along in their businesses, others with innovations that could shake up the entire industry.

On that note, if I had $1,000 to invest in a single nuclear stock and leave it untouched for years, I would choose a company whose reactor designs are positively disruptive, whose potential customer base is enormous, and whose business could become far more valuable if even a fraction of its ambitions came to fruition.

That company is Oklo (NYSE: OKLO).

How Oklo could ripen into one of nuclear's biggest winners

Oklo is, right now, like a vine of special grapes: Its business over the next decade could mature into a very fine wine. If things go badly, however, it could sour into a cheap vinegar. Let's start with the end result and work our way back. If Oklo stock becomes wine, it has done at least four things that it lacks today.

Foremost, it has licensed its Aurora reactor for commercial deployment. Second, it has secured enough high-assay, low-enriched uranium (HALEU) to support its reactors, a fuel that is scarce in the U.S. Third, it has proven it can scale its Aurora to attractive economics, meaning reactor margins are wide and profits are large. Lastly, it has deployed these reactors safely to a large enough customer base, which forms a solid foundation of recurring revenue.

These are all things I think Oklo can do. Its Aurora reactor is advancing through the Department of Energy's authorization process, and the company continues to target 2028 for the deployment of its first reactor. It has signed a letter of intent to purchase HALEU from Centrus Energy (NYSE: LEU).

It hasn't proven its economics -- and probably can't until Aurora is actually built -- but its commercial pipeline is long and diverse, representing roughly 18 gigawatts (GW) of potential Aurora projects.

Image source: Oklo.

The bull case for Oklo comes with risks

There are, however, many things that could turn Oklo stock sour, and they aren't any less important or improbable than those that could mature it.

Oklo, for instance, could take much longer to secure proper licensing for its reactors; likewise, construction costs for its reactors could be excessively high, or take longer than expected to finish. HALEU fuel could become increasingly scarce -- Oklo isn't the only company that wants it -- or AI-related electricity demand starts to cool.

Perhaps most importantly of all, Oklo could burn through billions of dollars before it ever commercializes Aurora. That would force the company to raise fresh capital -- that is, dilute existing shareholders -- and make today's already lofty valuation increasingly difficult to justify.

In short, the company is a high-risk, high-reward play on AI and nuclear energy. Although risk-intolerant investors might want to look elsewhere -- a nuclear-focused exchange-traded fund (ETF) could be interesting, too -- Oklo is the nuclear stock I'd choose for those with an appetite for risk.

Steven Porrello has positions in Oklo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.