AI’s Next Power Play: Vistra (VST) or OKLO?

Vistra (NYSE:VST) and Oklo (NASDAQ:OKLO) are just two high-flying energy plays that have gained significant ground amid the AI boom. Indeed, today’s GPUs are quite power hungry. And many of the top-of-the-line data center chips are about to get even more power-intensive.

As the AI hyperscalers look to small nuclear reactors and other large-scale, clean power solutions, well-established and diversified power generators like Vista and cutting-edge nuclear power innovators like Oklo could be positioned to fare well for investors over time.

Of course, there are going to be corrections and plunges along the way. But with such pronounced tailwinds, Vistra and Oklo stand out as some of the best ways to play the AI boom from the energy side.

Of course, the secret is out, and many investors have already punched their ticket to the pair as a way to play the energy angle of the AI revolution. After running through some rockier terrain, though, I do think there’s opportunity in any future pullbacks between now and the year’s end.

Let’s have a closer look at the pair to see which high-growth bet offers the better risk/reward as we pass midsummer and into a more seasonally nervous time of the year.

Vistra

It did not take long for Vistra to return to new highs after shedding close to half of its value as the market bottomed out during those Liberation Day depths.

While shares do seem overheated right here, some big-name analysts on Wall Street still think there’s ample room for upside as a past acquisition gives the firm a much-needed jolt as it looks to power a number of data centers out there. Whether you’re in the name for nuclear or natural gas, I do view VST shares as one of the most intriguing, diversified power options to stick with for the long haul.

Despite clocking in more than 600% in gains over the past two years, shares still don’t look that expensive at 31.4 times trailing price-to-earnings (P/E). As a firm with the capacity to grow into its premium multiple, I’d not be afraid to pursue the name if it’s able to sustain a breakout past the $200 mark. Ultimately, I think it’s the coming quarterly earnings release due in early August that will dictate whether VST shares can really break out.

Oklo

Oklo is a Sam Altman-owned stock that’s been even hotter than Vistra of late. The small nuclear reactor innovator is up a whopping 702% in the past year. And with a mere $10.5 billion market cap, there’s still room to the upside, especially if the firm’s latest strategic alliance announcement with Liberty Energy.

Though there’s a lot of excitement surrounding the profoundly powerful technology under the hood, Oklo is a few years away from a serious commercial take-off. The Aurora Powerhouse project is a first-of-its-kind fast-neutron reactor that the firm hopes to bring into commercialization by 2027.

If it hits the ground running, Oklo may very well be in the early innings of a transformative rally. For now, I don’t think there’s any sense in chasing the name after its latest multi-bagger run.

If you’re experiencing the fear of missing out (FOMO), perhaps starting a tiny position today could make sense as you await the next big pullback. In the meantime, new partnerships could act as fuel for a stock that’s still relatively unknown.

If the Aurora powerhouse commercialization goes smoothly, shares could prove cheap here despite the nearly 42 times price-to-book (P/B) multiple.

Perhaps the biggest reason to stick with the name over time, though, is the vote of confidence from OpenAI’s top boss, Sam Altman. The man’s a genius who’s pretty much the face of the AI boom. For this reason, I like OKLO stock more than VST. Though, I do acknowledge the rockier road ahead for the shares.

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