Battle Royale: Oklo vs. NuScale Power. Can Both Make You Rich?

The market is starting to price nuclear less as a policy theme and more as an infrastructure bottleneck to AI growth. The important second-order effect is that the winners are not the power producers alone but the companies that can secure contracted, behind-the-meter baseload before grid interconnection queues, turbine shortages, and permitting delays become binding constraints. That favors early movers with a credible commercialization path, while also creating a multi-year overhang for utility-scale builders that need capital markets and regulatory patience.

The setup is asymmetric because the narrative can keep re-rating well before revenue scales. If hyperscalers sign even a handful of firm power agreements, the market will extrapolate a much larger addressable market, but the fundamental proof point still has to come from financing, licensing, and deployment cadence. That means the trade works better over 6-24 months than over days, and it will be highly sensitive to any delay in NRC approvals, cost overruns, or a cooling in AI capex.

The contrarian miss is that the current enthusiasm may be understating execution risk and overestimating how quickly nuclear can displace gas. In the near term, gas turbines and grid upgrades remain the practical bridge, so nuclear is more likely to be a call option on the next decade than an immediate earnings driver. A pullback after hype spikes would likely be healthier than chasing strength, especially since the implied option value is being assigned before there is much operating data.

Bank of America is directionally right on the strategic value of baseload, but the best risk/reward is probably in separating platform risk from order-flow risk. SMR names can rerate sharply on contract announcements, yet the dispersion between winners and capital-intensive also-rans should widen as the market learns who can actually convert interest into financed projects.