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Could SpaceX's IPO Momentum Spill Over to OKLO and NuScale?
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Key Takeaways
SpaceX's debut may broaden focus to OKLO and NuScale as AI data centers drive electricity demand.
OKLO is pursuing reactors, fuel fabrication and recycling while still needing approvals and revenues.
NuScale has NRC approval for its SMR design and uses conventional low-enriched uranium.
The successful public debut of Space Exploration Technologies Corp. (SPCX - Free Report) earlier this month may have implications beyond the aerospace sector. As investors evaluate SpaceX’s long-term growth opportunities, attention could also shift toward companies that may help support the next phase of artificial intelligence (AI) and data-center expansion. Two companies that fit that theme are Oklo Inc. (OKLO - Free Report) and NuScale Power (SMR - Free Report) .
The connection comes down to electricity demand. SpaceX is increasingly being viewed as more than a rocket-launch and satellite-internet company. Investors see potential opportunities in areas such as AI infrastructure, defense technology, communications and data centers. While these markets offer significant growth potential, they also require large amounts of reliable power. AI data centers, in particular, need a continuous electricity supply to support their high computing workloads.
As a result, energy availability is becoming an important part of the AI investment story. While renewable sources such as solar and battery storage can help meet some demand, they may not be enough to provide consistent power around the clock. Small modular reactors (“SMR”) are attracting interest because they could deliver reliable, carbon-free electricity on a large scale. This growing focus on dependable power generation could increase investor interest in companies such as OKLO and NuScale Power.
Why OKLO Fits the Theme
OKLO could benefit if SpaceX’s public-market debut increases investor focus on the infrastructure needed to support AI, data centers and other power-intensive technologies. As investors look beyond SpaceX’s core rocket-launch and satellite businesses and consider its potential role in communications, defense technology and AI-related infrastructure, attention may increasingly turn to companies capable of supplying the reliable electricity needed to support that growth. In that environment, OKLO may be viewed as a potential solution to rising demand for around-the-clock power.
At the same time, OKLO remains an early-stage company, so the investment case is based more on future potential than current earnings. The company still needs to secure regulatory approvals, develop its fuel strategy, build projects and convert customer interest into commercial revenue. However, OKLO’s strategy extends beyond reactor development. It is also pursuing fuel fabrication, fuel recycling and other nuclear-related services. If fuel availability becomes a key challenge for the advanced nuclear industry, these additional capabilities could strengthen OKLO’s long-term position.
Why NuScale Power Could Also Gain
NuScale Power may benefit from the same power-demand trend, but its appeal is different. NuScale Power has a more established regulatory story, with its SMR design already backed by U.S. Nuclear Regulatory Commission approval. NuScale Power also uses conventional low-enriched uranium, which is more available than some advanced nuclear fuels.
This could make NuScale Power attractive to investors who want exposure to the SMR theme but prefer a technology path that appears closer to commercial use. The company is also working with utilities and international partners, while positioning its reactors as a possible solution for data centers and grid power needs.
Bottom Line
SpaceX may be the headline story, but the broader investment theme extends beyond aerospace. If AI, satellites, data centers and defense technologies continue to expand, electricity demand is likely to rise alongside them. OKLO and NuScale Power — both carrying a Zacks Rank #3 (Hold) — could benefit from increased investor focus on energy infrastructure because both are developing technologies aimed at delivering clean, reliable around-the-clock power.
However, investors should remain careful. OKLO and NuScale Power are still speculative stocks. Their long-term success will depend on approvals, financing, customer contracts and actual project delivery — not just SpaceX-related excitement.
View the Zacks #1 Rank List
Image: Bigstock
Could SpaceX's IPO Momentum Spill Over to OKLO and NuScale?
Key Takeaways
The successful public debut of Space Exploration Technologies Corp. (SPCX - Free Report) earlier this month may have implications beyond the aerospace sector. As investors evaluate SpaceX’s long-term growth opportunities, attention could also shift toward companies that may help support the next phase of artificial intelligence (AI) and data-center expansion. Two companies that fit that theme are Oklo Inc. (OKLO - Free Report) and NuScale Power (SMR - Free Report) .
The connection comes down to electricity demand. SpaceX is increasingly being viewed as more than a rocket-launch and satellite-internet company. Investors see potential opportunities in areas such as AI infrastructure, defense technology, communications and data centers. While these markets offer significant growth potential, they also require large amounts of reliable power. AI data centers, in particular, need a continuous electricity supply to support their high computing workloads.
As a result, energy availability is becoming an important part of the AI investment story. While renewable sources such as solar and battery storage can help meet some demand, they may not be enough to provide consistent power around the clock. Small modular reactors (“SMR”) are attracting interest because they could deliver reliable, carbon-free electricity on a large scale. This growing focus on dependable power generation could increase investor interest in companies such as OKLO and NuScale Power.
Why OKLO Fits the Theme
OKLO could benefit if SpaceX’s public-market debut increases investor focus on the infrastructure needed to support AI, data centers and other power-intensive technologies. As investors look beyond SpaceX’s core rocket-launch and satellite businesses and consider its potential role in communications, defense technology and AI-related infrastructure, attention may increasingly turn to companies capable of supplying the reliable electricity needed to support that growth. In that environment, OKLO may be viewed as a potential solution to rising demand for around-the-clock power.
At the same time, OKLO remains an early-stage company, so the investment case is based more on future potential than current earnings. The company still needs to secure regulatory approvals, develop its fuel strategy, build projects and convert customer interest into commercial revenue. However, OKLO’s strategy extends beyond reactor development. It is also pursuing fuel fabrication, fuel recycling and other nuclear-related services. If fuel availability becomes a key challenge for the advanced nuclear industry, these additional capabilities could strengthen OKLO’s long-term position.
Why NuScale Power Could Also Gain
NuScale Power may benefit from the same power-demand trend, but its appeal is different. NuScale Power has a more established regulatory story, with its SMR design already backed by U.S. Nuclear Regulatory Commission approval. NuScale Power also uses conventional low-enriched uranium, which is more available than some advanced nuclear fuels.
This could make NuScale Power attractive to investors who want exposure to the SMR theme but prefer a technology path that appears closer to commercial use. The company is also working with utilities and international partners, while positioning its reactors as a possible solution for data centers and grid power needs.
Bottom Line
SpaceX may be the headline story, but the broader investment theme extends beyond aerospace. If AI, satellites, data centers and defense technologies continue to expand, electricity demand is likely to rise alongside them. OKLO and NuScale Power — both carrying a Zacks Rank #3 (Hold) — could benefit from increased investor focus on energy infrastructure because both are developing technologies aimed at delivering clean, reliable around-the-clock power.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, investors should remain careful. OKLO and NuScale Power are still speculative stocks. Their long-term success will depend on approvals, financing, customer contracts and actual project delivery — not just SpaceX-related excitement.