NuScale Power vs. Oklo: Which Nuclear Stock Is a Better Buy in 2026?

As the tech sector hunts for reliable, carbon-free energy to power data centers, investors are looking at NuScale Power (NYSE:SMR) and Oklo (NYSE:OKLO) to see which stock is a better buy.

NuScale focuses on its certified reactor design to serve traditional utilities and industrial clients. Oklo takes a different route, planning to build and operate its own fast-fission plants with high-profile backing. Both firms are leading the shift toward modular nuclear power, but they carry very different financial profiles and development timelines.

The case for NuScale Power

NuScale Power is developing proprietary small modular reactor (SMR) technology and related plant services to generate carbon-free power. Its target markets include data centers, desalination plants, and commercial hydrogen production.

The company aims to be a leader among electric utility stocks by providing carbon-free electricity to industrial and commercial users. However, it has an exclusive commercialization partner, ENTRA1 Energy. That adds a layer of risk to the business because NuScale is obligated to make large milestone payments to ENTRA1 without guaranteed revenue contracts in return.

Nuscal hasn’t commercialized its technology, so it’s not generating any meaningful revenue yet and remains deep in losses. It doesn’t have any long-term debt, though, and ended the first quarter with $341 million in cash and cash equivalents and another $836 million in short-term investments. That’s nearly $1 billion that the company can bank on any time if it wants cash to run operations and fund growth.

The case for Oklo

Oklo is developing fast-fission power plants, called Aurora powerhouses, and fuel recycling technology to produce carbon-free energy. It eventually aims to make money by selling electricity, targeting high-demand users like data centers and industrial facilities. It has already gained traction through a prepayment agreement with Meta Platforms (NASDAQ:META) and non-binding interest from Equinix (NASDAQ:EQIX). Oklo has also signed a master power agreement with Switch for 12 gigawatts (GW) of capacity. These agreements show strong interest from major technology companies looking for reliable energy.

Oklo is a pre-revenue company, as its power plants are still in the early stages of permitting and construction. It’s a loss-making company as it is investing heavily in engineering and regulatory approvals. Like NuScale, Oklo also doesn’t carry any long-term debt but has a massive cash balance of over $2 billion, thanks mainly to recent stock sale.

Risk profile comparison

NuScale faces risks because it has not yet signed binding contracts to deliver its reactor modules, which leaves its future revenue uncertain. It must also compete against large, state-supported entities like China National Nuclear Corporation and other global players in the nuclear sector. There are also concerns that the cost of its electricity might not be competitive against other energy sources in the U.S. Delays in the design or manufacture of its first commercial units could also harm its reputation and financial health.

Oklo has not yet built any powerhouses or secured binding purchase agreements, making its future performance difficult for investors to predict. Building fuel recycling facilities is also a complex process that could face regulatory hurdles or cost overruns. Finally, any negative public perception of nuclear energy could severely limit the demand for its technology.

Valuation comparison

While Oklo is valued based on high future earnings estimates, NuScale is currently priced relative to its sales because it has not yet reached profitability.

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Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Both Oklo and NuScale Power are riding the massive tailwinds of artificial intelligence (AI) data center energy demand and the U.S. government’s backing of nuclear energy. The Trump administration aims to quadruple U.S. nuclear capacity to 400 GW by 2050 and is fast-tracking the development of new reactors.

Between the two stocks, though, I’d buy Oklo. That’s because of stronger collaborations and partnerships, as well as operational progress.

OKLO data by YCharts

Oklo is already part of multiple Department of Energy (DOE) nuclear pilot programs. It has a major July 4 target to achieve criticality (self-sustaining nuclear chain reaction) at its Groves Isotope Test Reactor in Texas.

It is also making progress in nuclear fuel recycling and is building facilities, since fast-fission plants can run on both fresh and used fuel. That’s a huge competitive advantage because the U.S. has a massive stockpile of unused energy such as plutonium left over from commercial nuclear waste , which the government wants to put to use. The DOE has just selected Oklo, along with a few other companies, for its Surplus Plutonium Utilization Program.

Oklo also has major partnerships. For example, it is collaborating with Nvidia (NASDAQ:NVDA) to use the tech giant’s AI computing power and software for nuclear research and development.

NuScale is the first company to win design approval for its SMRs from the U.S. Nuclear Regulatory Commission (NRC). Through programs like ENTRA1 Energy’s 6 GW deal with the Tennessee Valley Authority (TVA), NuScale also has a strong project pipeline.

Yet, Oklo’s direct collaborations with the DOE and companies like Nvidia, and a massive cash balance, make it a tad “safer” than NuScale Power.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix, Meta Platforms, and Nvidia. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.