Nuclear Microreactor Stocks Soar, OKLO Jumps 122% in Five Days: Three to Watch

Major tech giants are expected to leverage nuclear energy to power AI data centers, benefiting nuclear-related companies. Small modular reactors, known for their flexibility and safety, are attracting market attention, driving a recent surge in related stocks.

Google announced it has inked a deal with nuclear reactor developer Kairos Power to aid in developing and building several reactors.

Amazon disclosed Wednesday it is collaborating with Virginia utility Dominion Energy to investigate constructing small modular reactors (SMRs). This marks Amazon’s initial foray into the nuclear energy sector.

SMRs offer a novel approach to nuclear power, featuring modular construction for quicker build times and cost-efficiency. Ideal for small-scale, decentralized grids, they are well-suited for emerging markets and remote locales. Enhanced safety features, including advanced cooling systems and automated safety mechanisms, substantially mitigate operational risks.

Oklo went public via a SPAC merger on May 10, listing on the NYSE, only to see its stock plummet 54% on the first day. After hitting a low of $5.35 in early September, shares have since rebounded over 310% from that point.

Oklo has yet to post any revenue, reporting a net loss of $53 million for the six months ended June 30. The company plans to start building its inaugural Aurora power plant in 2026, aiming to begin operations by late 2027. The plant is expected to initially produce 15 megawatts, with scalability potential up to 100 megawatts or more.

CEO Jacob DeWitte asserts that Oklo's business strategy does not hinge on the Idaho plant's launch timeline. Typically, a power purchase agreement ensures a stable income stream for up to 20 years. Oklo's latest financial report shows a significant rise in letters of intent from prospective customers, reaching 1,350 megawatts—up 93% from 700 megawatts in July 2023.

During a recent earnings call, President and CEO John Hopkins emphasized NuScale's advantage in the deployment of small reactors relative to its competitors. The firm is advancing its standard module design to 77 megawatts, with an NRC decision expected by mid-2025. Hopkins noted ongoing negotiations with data centers and other large industrial clients but refrained from providing specifics.

NuScale reported $2.35 million in revenue for the first half of the year, a decrease of 79.24% from the previous year. The net loss for the period expanded by 87.5% to $123 million, compared to a net loss of $65.34 million last year.

NANO Nuclear Energy is advancing its solid core battery reactor "ZEUS" and low-pressure coolant reactor "ODIN," both portable, on-demand, advanced micro reactors.

In September, NANO Nuclear Energy established a subsidiary, NANO Nuclear Space Inc. (NNS), to investigate the commercial use of its micro reactor technology in space. NNS plans to refine NANO's solid core battery reactor and low-pressure coolant reactor for extraterrestrial power systems and environments that support human life, the company stated.

Like OKLO, NNE has yet to generate revenue. The net loss for the June quarter stood at $4.67 million.

Notably, while enthusiasm for nuclear stocks has surged recently, the long construction timeline for small nuclear reactors introduces significant uncertainty in revenue and profitability. The complex regulatory process for nuclear energy could delay the operational timeline for nuclear plants.

Uranium, the key fuel for nuclear plants, stands to benefit most from the restart of nuclear facilities, as the initial fuel load requires three times more uranium than regular refueling. Globally, reactors in Taiwan, India, and Canada could resume operations within the next five years, potentially driving further uranium demand.