The artificial intelligence revolution’s voracious appetite for electricity is breathing new life into a once-maligned energy sector, catapulting the stock prices of nuclear power companies to astonishing heights. As the digital infrastructure for AI demands an unprecedented amount of power, investors are betting heavily on nuclear energy, particularly innovative small modular reactors (SMRs), to bridge the impending energy gap. This speculative fervor has created multi-billion dollar valuations for companies that, for all the market excitement, have yet to generate significant revenue or build a single operational commercial plant. While the narrative connecting AI’s energy needs to nuclear power is compelling, a stark chasm exists between the market’s euphoric projections and the complex, capital-intensive reality of developing and deploying new nuclear technology. The current investment landscape is thus defined by this high-stakes gamble on a future that remains largely on the drawing board.
The AI Catalyst and Market Frenzy
The primary driver behind this resurgence is the sheer scale of energy required to power the next generation of computing. Analysts project that the capital investment needed to meet the electricity demand from AI data centers alone could exceed $1 trillion by 2029. This staggering forecast has positioned nuclear energy as a critical component of the future energy mix, capable of providing the reliable, carbon-free, baseload power that intermittent renewables cannot guarantee. In this environment, companies like Oklo (OKLO) and NuScale Power (SMR) have become market darlings. Over the last three years, Oklo’s stock has surged by an incredible 733%, while NuScale has seen a 65.6% increase, pushing their market capitalizations into the billions. This investor enthusiasm is rooted in the promise of SMRs, which are designed to be smaller, more flexible, and potentially faster to build than traditional, large-scale nuclear plants, making them an ideal theoretical solution for powering dedicated data center campuses and industrial hubs.
A Sobering Look at Operational Realities
Despite the market’s enthusiastic endorsement, an examination of the underlying business fundamentals reveals a far more precarious situation. Neither Oklo nor NuScale Power has a licensed, operational nuclear reactor, and neither generates any meaningful revenue. NuScale Power holds the distinction of having the first SMR design approved by the U.S. Nuclear Regulatory Commission (NRC), a significant regulatory achievement. However, the company’s only historical project of note was canceled due to escalating cost overruns, casting serious doubt on the economic viability of its technology in practice. Meanwhile, Oklo is at an even earlier stage; its innovative reactor design, which aims to use recycled nuclear waste as fuel, has not yet been formally submitted to the NRC for approval. The analysis of these companies in 2026 underscored a profound disconnect, where immense market value was assigned based on a compelling narrative rather than tangible progress, revenue, or a proven track record of project execution. The path from a design concept to a functioning, power-generating, and profitable nuclear plant remained exceptionally long, fraught with immense regulatory, financial, and logistical hurdles that the current stock prices seemed to largely disregard.
