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Nuclear stocks were some of the biggest winners over the past year as investors are starting to notice their role in the AI bottleneck. Nuclear plants provide a reliable, carbon-free energy source that doesn’t put pressure on the power grid. Big tech companies are willing to invest hundreds of billions of dollars into AI each year, and some of those investments went to nuclear companies.
For instance, Meta Platforms (NASDAQ:META) recently signed a long-term deal with Oklo (NYSE:OKLO) that includes the development of a 1.2 gigawatt campus. Meta Platforms has agreed to prepay for power so Oklo can fund the site’s development. Oklo aims to complete the project by 2034, with some megawatts available as early as 2030.
It may be the beginning of more dealmaking, but there are some reasons to remain patient for now.
The Short-Term Revenue Outlook Is Still Murky
Oklo’s model involves accepting prepayments and using that money to build its sites. That way, Oklo and other nuclear power providers have access to capital without diluting investors. Centrus Energy (NYSE:LEU) is approaching a $6 billion market cap. The nuclear energy stock brought in $74.9 million in revenue and $3.9 million in net income in Q3 2025.
Centrus Energy also has a $3.9 billion backlog, but it extends all the way to 2040. Not all of that revenue will be realized right away, and as Centrus Energy’s stock continues to rise, its valuation becomes more lofty.
Oklo doesn’t have the best growth either based on a $36.3 million loss from operations in Q3 2025. The Meta Platforms prepayment will help with additional funding, but meaningful profits and revenue expansion look like they are multiple years away.
This News Is More Bullish For Companies That Already Have AI Infrastructure
The strong demand for nuclear stocks reflects the AI ambitions of many tech giants, but the partnership between Meta Platforms and Oklo is actually more bullish for AI infrastructure companies that already have energy and data centers set up.
The deal indicates Meta Platforms is comfortable with paying for 1.2 gigawatts that they know they can’t fully access in 2034. Meanwhile, IREN (NASDAQ:IREN) and Cipher Mining (NASDAQ:CIFR) are some of the AI infrastructure stocks that have multi-gigawatt pipelines that should be ready to go much sooner. IREN’s 1.4 gigawatt Sweetwater 1 site should be fully ready by April.
These AI data center providers have a more clear and immediate path to realized revenue than nuclear energy stocks.
Nuclear Energy Can Become A Mega Trend
Nuclear energy is a hot topic, and with all of the capital flowing into the industry, it would be no surprise to see nuclear stocks dominate headlines in the years ahead. However, the thought of investing in a future winner can result in stretched valuations in the short run.
Investors may be better off pursuing other stocks that address AI bottlenecks like energy and memory storage. Oklo is down by roughly 50% from its all-time high, while Centrus Energy has declined by about 30%. These declines show how quickly fortunes can change due to lofty valuations. These stocks are long-term winners, but some stocks are poised to generate compelling returns sooner than nuclear stocks.