These two nuclear energy stocks have the potential to transform a $10,000 investment into significant wealth

Nuclear Power's Role in Meeting Growing Energy Demands

Across the United States and much of the world, the expansion of nuclear energy has largely stalled, with widespread apprehension about its safety and environmental consequences.

However, a new challenge is emerging: the data center sector, fueled by the rapid rise of artificial intelligence (AI), is poised to require unprecedented amounts of electricity in the coming years. The current energy infrastructure appears ill-equipped to handle this surge in demand.

This scenario is sparking renewed enthusiasm for a new generation of nuclear energy companies. Two particular stocks are capturing investor attention, and for those willing to wait, they could offer significant financial rewards.

The Rise of Small Modular Reactors

Small modular reactor (SMR) technology, which focuses on compact, scalable nuclear reactors that reduce upfront costs and construction times, is experiencing a resurgence. These reactors are also well-suited for remote or off-grid locations, adding to their appeal.

Although SMRs were first conceptualized in the 1950s, progress was slow for decades. That changed in 2020 when NuScale Power (NYSE: SMR) became the first company to receive U.S. Nuclear Energy Commission approval for an SMR design. In 2025, NuScale achieved another milestone with a larger reactor design. Meanwhile, Oklo (NYSE: OKLO) is currently navigating the regulatory process for its own SMR technology.

The opportunity is clear: SMRs are being positioned as a solution to the surging power needs of AI and data centers. NuScale highlights projections that AI-driven data center electricity demand will triple between 2024 and 2030, estimating that around 300 GW of new nuclear capacity will be required to support this growth. Oklo, too, emphasizes data centers as a primary driver in its investor communications.

Industry experts are taking notice. A recent Deloitte report underscored the "increasing power requirements from data centers to fuel AI expansion," and concluded that nuclear power is becoming an increasingly attractive option.

Advantages of SMR Technology

SMR facilities offer several key benefits:

• Consistent, weather-independent base load power
• High energy density, enabling installation in challenging or expensive locations
• Scalability, allowing for tailored solutions and future expansion
• Potential to significantly lower the carbon footprint of data centers, aligning with sustainability goals of major tech companies

Image source: Getty Images

Is Now the Time to Invest in Oklo or NuScale Power?

The nuclear sector is already experiencing a revival. Morgan Stanley projects that global nuclear capacity could more than double, reaching 860 GW by 2050, up from 398 GW today. The firm also estimates that investments in the nuclear sector could total $2.2 trillion over the next quarter-century.

But does this mean SMR-focused companies like Oklo and NuScale Power are solid investments? The answer is not straightforward.

Both companies have the potential to help meet the energy needs of AI and data centers, but questions remain about the cost-effectiveness and market demand for their technologies. While both have secured initial customers, Oklo's designs have yet to be approved in the U.S., and NuScale recently faced a significant project delay, pushing its operational timeline to 2034.

In summary, it may be some time before SMR technology becomes mainstream. Some industry observers remain skeptical that SMRs will ever surpass traditional large-scale nuclear plants in viability.

Despite recent declines in share prices, NuScale Power is valued at $4.1 billion and Oklo at $9.6 billion—figures that are modest compared to long-term nuclear market projections. For instance, Bank of America estimates the nuclear opportunity could reach $10 trillion, though it anticipates only about 50 GW of new SMR capacity by 2040, representing less than 10% of total expected growth.

Shares of NuScale Power and Oklo are currently much lower than just a few months ago, and the nuclear sector's potential could make these stocks highly rewarding for patient investors. However, they also come with considerable risk.

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