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FCEL vs. OKLO: Which Data Center Power Stock Looks Better?
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Key Takeaways
OKLO is building a vertically integrated nuclear platform; first commercial reactor targeted for 2028.
FuelCell Energy has 80% of its pipeline in data centers, with 1.5 GW proposals submitted.
OKLO surged 191% in a year and trades near 8X trailing price-to-book, reflecting high expectations.
The rapid rise of artificial intelligence (AI) and cloud computing is reshaping the way data centers source power. Reliability, scalability and speed of deployment are now just as critical as cost and sustainability. Against this backdrop, Oklo Inc. (OKLO - Free Report) and FuelCell Energy (FCEL - Free Report) are emerging as two distinct players addressing the same problem with very different technologies. While OKLO is betting on advanced nuclear reactors for long-term, large-scale baseload power, FuelCell Energy is focused on deployable, modular fuel cell systems that can serve demand today. As data centers increasingly look beyond traditional grids, both companies are gaining attention — but their timelines, risks and financial profiles differ significantly.
OKLO: Long-Term Nuclear Bet With Strong Policy Support
OKLO is building a vertically integrated nuclear platform spanning power generation, fuel recycling and isotope production, allowing it to capture value across the entire nuclear lifecycle. This approach is designed to provide reliable baseload power, which is particularly attractive for data centers that require an uninterrupted energy supply. The company’s partnership with Meta for a planned 1.2 GW data center power campus highlights strong demand visibility and validates interest from hyperscalers.
Additionally, OKLO’s isotope business offers a near-term revenue bridge, with initial output expected around 2026. The company is also benefiting from strong policy tailwinds, including U.S. government initiatives to accelerate nuclear deployment and support advanced reactor development.
However, OKLO remains pre-commercial, with meaningful revenues from power generation likely several years away. Its first commercial reactor is expected around 2028, making it a long-duration investment. High capital expenditure, regulatory hurdles and ongoing cash burn add to execution risks. While its technology offers potential cost advantages and long-term scalability, investors are largely betting on future success rather than current fundamentals.
FCEL: Near-Term Execution Driven by Data Centers
FuelCell Energy, on the other hand, is focused on delivering immediate, scalable power solutions through its fuel cell technology. Its systems can generate electricity, hydrogen and heat simultaneously, improving efficiency and enabling multiple revenue streams.
The company is seeing strong traction from data centers, with over 80% of its project pipeline now tied to this segment and more than 1.5 GW of proposals submitted recently. This reflects a major shift toward decentralized, on-site power solutions as grid constraints become a bottleneck for AI infrastructure growth. FuelCell’s modular systems can be deployed relatively quickly, making them attractive for near-term needs.
Financially, FCEL has shown improving momentum, including strong revenue growth and a clearer path toward operating leverage as production scales. However, challenges remain. The company continues to operate at a loss, with negative margins and a prevailing cash burn. Additionally, competition from better-capitalized peers and the need for consistent execution could limit upside in the near term.
Price Performance
Over the past year, both stocks have delivered strong returns, reflecting investor enthusiasm around AI-driven power demand. OKLO has surged 182.6%, outperforming FuelCell Energy, which is up 143%. The sharper rally in OKLO reflects its positioning as a high-growth, next-generation nuclear play, though it also indicates higher expectations priced into the stock.
Image Source: Zacks Investment Research
Valuation
From a valuation perspective, the gap between the two companies is significant. On a trailing price-to-book basis, FuelCell Energy trades at less than 1X, while Oklo commands a much higher multiple of around 8X. This suggests that investors are assigning a premium to Oklo’s long-term potential, whereas FCEL is viewed more conservatively due to its ongoing profitability challenges.
Image Source: Zacks Investment Research
EPS Estimate Revisions
Earnings expectations further highlight the divergence.
The Zacks Consensus Estimate for OKLO indicates earnings declines of 4% in 2026 and 36% in 2027, reflecting its pre-commercial status and continued investment phase.
Image Source: Zacks Investment Research
In contrast, FuelCell Energy’s earnings estimates point to growth in the coming years, suggesting improving fundamentals as projects scale and execution strengthens.
Image Source: Zacks Investment Research
Final Verdict
In conclusion, both OKLO and FuelCell Energy are well-positioned to benefit from the growing power demands of AI-driven data centers, but they represent very different investment profiles. OKLO offers a compelling long-term story backed by advanced nuclear technology and strong policy support, but it comes with higher execution risk and delayed revenue visibility. FuelCell Energy, meanwhile, provides a more immediate pathway to growth through deployable solutions, though profitability remains a challenge. While both stocks carry a Zacks Rank #3 (Hold), FCEL looks slightly better at the moment due to its nearer-term revenue opportunities and improving earnings outlook.
View the Zacks #1 Rank List
Image: Bigstock
FCEL vs. OKLO: Which Data Center Power Stock Looks Better?
Key Takeaways
The rapid rise of artificial intelligence (AI) and cloud computing is reshaping the way data centers source power. Reliability, scalability and speed of deployment are now just as critical as cost and sustainability. Against this backdrop, Oklo Inc. (OKLO - Free Report) and FuelCell Energy (FCEL - Free Report) are emerging as two distinct players addressing the same problem with very different technologies. While OKLO is betting on advanced nuclear reactors for long-term, large-scale baseload power, FuelCell Energy is focused on deployable, modular fuel cell systems that can serve demand today. As data centers increasingly look beyond traditional grids, both companies are gaining attention — but their timelines, risks and financial profiles differ significantly.
OKLO: Long-Term Nuclear Bet With Strong Policy Support
OKLO is building a vertically integrated nuclear platform spanning power generation, fuel recycling and isotope production, allowing it to capture value across the entire nuclear lifecycle. This approach is designed to provide reliable baseload power, which is particularly attractive for data centers that require an uninterrupted energy supply. The company’s partnership with Meta for a planned 1.2 GW data center power campus highlights strong demand visibility and validates interest from hyperscalers.
Additionally, OKLO’s isotope business offers a near-term revenue bridge, with initial output expected around 2026. The company is also benefiting from strong policy tailwinds, including U.S. government initiatives to accelerate nuclear deployment and support advanced reactor development.
However, OKLO remains pre-commercial, with meaningful revenues from power generation likely several years away. Its first commercial reactor is expected around 2028, making it a long-duration investment. High capital expenditure, regulatory hurdles and ongoing cash burn add to execution risks. While its technology offers potential cost advantages and long-term scalability, investors are largely betting on future success rather than current fundamentals.
FCEL: Near-Term Execution Driven by Data Centers
FuelCell Energy, on the other hand, is focused on delivering immediate, scalable power solutions through its fuel cell technology. Its systems can generate electricity, hydrogen and heat simultaneously, improving efficiency and enabling multiple revenue streams.
The company is seeing strong traction from data centers, with over 80% of its project pipeline now tied to this segment and more than 1.5 GW of proposals submitted recently. This reflects a major shift toward decentralized, on-site power solutions as grid constraints become a bottleneck for AI infrastructure growth. FuelCell’s modular systems can be deployed relatively quickly, making them attractive for near-term needs.
Financially, FCEL has shown improving momentum, including strong revenue growth and a clearer path toward operating leverage as production scales. However, challenges remain. The company continues to operate at a loss, with negative margins and a prevailing cash burn. Additionally, competition from better-capitalized peers and the need for consistent execution could limit upside in the near term.
Price Performance
Over the past year, both stocks have delivered strong returns, reflecting investor enthusiasm around AI-driven power demand. OKLO has surged 182.6%, outperforming FuelCell Energy, which is up 143%. The sharper rally in OKLO reflects its positioning as a high-growth, next-generation nuclear play, though it also indicates higher expectations priced into the stock.
Valuation
From a valuation perspective, the gap between the two companies is significant. On a trailing price-to-book basis, FuelCell Energy trades at less than 1X, while Oklo commands a much higher multiple of around 8X. This suggests that investors are assigning a premium to Oklo’s long-term potential, whereas FCEL is viewed more conservatively due to its ongoing profitability challenges.
EPS Estimate Revisions
Earnings expectations further highlight the divergence.
The Zacks Consensus Estimate for OKLO indicates earnings declines of 4% in 2026 and 36% in 2027, reflecting its pre-commercial status and continued investment phase.
In contrast, FuelCell Energy’s earnings estimates point to growth in the coming years, suggesting improving fundamentals as projects scale and execution strengthens.
Final Verdict
In conclusion, both OKLO and FuelCell Energy are well-positioned to benefit from the growing power demands of AI-driven data centers, but they represent very different investment profiles. OKLO offers a compelling long-term story backed by advanced nuclear technology and strong policy support, but it comes with higher execution risk and delayed revenue visibility. FuelCell Energy, meanwhile, provides a more immediate pathway to growth through deployable solutions, though profitability remains a challenge. While both stocks carry a Zacks Rank #3 (Hold), FCEL looks slightly better at the moment due to its nearer-term revenue opportunities and improving earnings outlook.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.