Nuclear energy is enjoying a resurgence, with Cameco and Oklo emerging as popular stocks among investors.
Nuclear power is making a strong comeback, driven by an insatiable demand for energy from companies across the globe. Data centers are at the forefront of this energy revolution, with tech giants like Microsoft and Meta Platforms turning to nuclear energy providers to secure their future power needs.
With the U.S. resuming nuclear energy initiatives under the Trump administration and a growing global consensus in favor of nuclear power, the sector is poised for growth.
Two nuclear stocks that have grabbed investor attention are Cameco (CCJ 2.27%) and Oklo (OKLO -1.85%). Although both companies operate within the same industry, they feature distinct business models and risk profiles. If you’re considering investing in nuclear power, here’s what you need to know about these two companies.
Image source: Getty Images.
Cameco operates a major uranium mining company
Cameco is a key player and one of the world’s largest uranium producers. It has a majority stake in two of the world’s largest high-grade uranium mines at McArthur River and Cigar Lake in Saskatchewan.
It also holds a 40% interest in joint venture Inkai in Kazakhstan, where its estimated share of reserves is 100.4 million pounds with an estimated mine life until 2045.
Finally, the company owns a 49% interest in Westinghouse in a strategic partnership with Brookfield Renewable Partners. Westinghouse is a nuclear reactor technology original equipment manufacturer (OEM) and a global provider of products and services to commercial utilities and government agencies.
Cameco is more established across the nuclear and uranium supply chain. The company is expected to experience a solid upswing in earnings over the next few years, as demand for uranium increases amid growing nuclear power initiatives globally.
Oklo is building nuclear infrastructure for the future
Oklo is a different beast. The company is still in its early stages, hasn’t generated any revenue yet, and doesn’t have any commercially available products to sell at this time. Instead, it is focused on building the future of nuclear energy infrastructure.
Its Aurora powerhouse product line is based on liquid-metal-cooled sodium fast reactor technology. As metal-fueled fast reactors, Aurora powerhouses are designed to operate by harnessing the power of high-energy, or “fast,” neutrons. This enables them to tap into the vast energy reserves remaining in existing used nuclear fuel from conventional nuclear power plants.
Its Aurora powerhouse product line is designed to produce 15 to 75 megawatts electric (MWe) and has the potential to expand to 100 MWe and higher.
With all this said, Oklo is still in its early stages of development and still doesn’t have a commercially available product. The company will continue to incur costs as it obtains its licenses and builds out its first reactors. It expects to spend $65 million to $80 million on operations with no revenue this year.
Analysts covering Oklo think it won’t generate revenue in 2027 and between $5.2 million and $18 million in 2028. Meanwhile, they project the company will continue to rack up losses and may not be profitable until 2030 at the earliest.
Which stock is right for you?
Cameco and Oklo have both benefited from strong tailwinds and favorable news surrounding nuclear power generation. As a result, both stocks have gone up significantly, Cameco up 42% and Oklo 221% since the start of the year, and both trade at lofty valuations.
For more conservative investors, Cameco may be a better buy today because it can more immediately address the growing demand for uranium. However, it’s a bit pricey at these levels at 50 times next year’s earnings. If you buy the stock at today’s valuation, you believe its strong forecasted growth over the next several years will come to fruition.
If you’re more aggressive and comfortable taking risks, Oklo may be the stock for you. Oklo is a high-risk, high-reward stock in the nuclear energy sector, having attracted significant attention due to its compelling long-term use case.
Buying the stock today is a bet that its future commercialization plans will be realized and eventually become a profitable business. If you do buy it, a prudent approach can be to purchase a small position today and add to it over time as it reaches key milestones over the next several years.
Courtney Carlsen has positions in Cameco and Microsoft. The Motley Fool has positions in and recommends Meta Platforms and Microsoft. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Cameco and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.