Oklo's Nuclear Revolution: Could This Utility Stock Dethrone Nvidia?

Nvidia is often considered the signature stock of the AI era, but its dominance may not last. A smaller utility company, Oklo (OKLO -2.45%), could potentially outperform Nvidia over the next decade with its innovative small nuclear reactors.

Oklo's reactors are compact and can fit on a few acres, making them ideal for on-site power generation in data centers like those used by AI companies. This would limit their dependence on the grid and provide more certainty over power supply.

The company doesn't aim to sell reactors but instead generates electricity from its deployed units under long-term contracts. While Oklo's valuation of around $7 billion is high, with a price-to-sales ratio of over 5,500 times its current sales, it may have room for upside in the next decade.

A tenfold gain in Nvidia would make it a $53 trillion-dollar company, while a similar increase in Oklo's valuation would imply around $67 billion. This is roughly $30 billion less than Constellation Energy's market cap, currently America's leader in nuclear energy generation.