Oklo (OKLO 11.24%) and Nano Nuclear Energy (NNE 15.15%) are early-stage nuclear companies pursuing a similar ambition: How to shrink the nuclear power plant from a sprawling concrete behemoth into something that can fit much closer to the customers who actually need the power.
In this regard, Oklo has its Aurora powerhouse design, while Nano has several designs with epic, mythopoeic names (Kronos, Zeus, and Loki). Some of Nano's reactors are designed to fit on a semi-truck; Oklo's early renderings make its powerhouse look as peaceful as a spa in a mountain cabin.
Image source: Oklo.
Both of these nuclear energy stocks are volatile, speculative, and risky. However, between the two, I think Oklo will be the better pick for most investors. Here's why.
Oklo has the bigger customer pipeline
Ever since going public in May 2024, Oklo's name has never been far from the question, "How will artificial intelligence get enough electricity?" While it's not the only novel energy company muscling into the AI space -- Bloom Energy is also there -- its factory-styled modular design has captured the imaginations of tech CEOs whose clean power choices aren't currently wide-ranging.
NYSE: OKLO
Key Data Points
Sam Altman, CEO of OpenAI, was an early supporter of Oklo (he served as its first chairman until last April), but his support has been in the background lately. Oklo has now established partnerships with tech giants like Meta Platforms, data center developers like Switch and Equinix, and energy firms like Liberty Energy. Its potential customer pipeline exceeds 14 gigawatts (GW).
Nano has its partnerships too, including a memorandum of understanding to couple its microreactors with the AI infrastructure of Super Micro Computer. Certainly, more collaborative partners could join Supermicro, but Oklo's marquee list is currently longer and could generate more revenue long term.
NASDAQ: NNE
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Future revenue estimates are also important to consider, since neither company is currently making meaningful sales. In this regard, Nano has gotten a small revenue foothold with its recent acquisition of Secured Transportation Services, which generated $7 million in annual revenue last year. Oklo has also made a meaningful acquisition -- Atomic Alchemy -- that could help it tap into a multibillion-dollar medical isotope market.
Data by YCharts
Both companies have strong liquidity. Oklo reported about $2.5 billion in cash and marketable securities on its most recent balance sheet, while Nano reported about $565 million. While both companies are burning cash and reporting losses, their balance sheets should support operations for several years to come.
Both companies have an enormous market opportunity ahead. But if small advanced reactors really do populate the future landscape of energy, Oklo's early support and fortified balance sheet make it better positioned for stronger growth over the long term.
