I Own Both Oracle and NuScale for Different Reasons. Here's How They Fit Together.

The four largest hyperscalers—Amazon, Alphabet, Microsoft, and Meta Platforms—will invest $725 billion in capital expenditures this year. UBS projects that over the next three years (2026–2028), hyperscalers could spend up to $4.1 trillion on AI infrastructure. Oracle (ORCL) and NuScale Power (SMR) are two stocks I own that serve distinct but complementary roles in this expansion.

Oracle focuses on artificial intelligence and cloud infrastructure. Its cloud revenue surged 93% year-over-year to $5.8 billion, with a massive $638 billion in remaining performance obligations, including commitments from frontier AI developers. In September 2024, Oracle’s Chairman Larry Ellison announced plans to design multi-gigawatt data center campuses powered by small modular reactors (SMRs). While Oracle faces electricity constraints due to AI’s high power demands, its aggressive cloud expansion—including $67 billion in AI infrastructure contracts—positions it strongly in the AI data center market. However, concerns remain about delays in data center openings, given its $55.7 billion in capital expenditures and over $122 billion in debt. Despite this, analysts project earnings growth of 36% in 2027 and 39% in 2028, though the stock has declined 54% from its 52-week high.

NuScale Power manufactures SMRs, the only design approved by the Nuclear Regulatory Commission. While NuScale is a startup in nuclear energy, its NuScale Power Module could transform energy production. The stock has been volatile, down 83% from its 52-week high of $57. Its largest shareholder, Fluor, sold its stake, and no firm commitments beyond a collaborative agreement with ENTRA1 Energy (to deploy up to 6 GW of SMRs in Romania) have been secured. However, potential partnerships with the Tennessee Valley Authority (TVA) could provide a major catalyst if secured by year-end.

Both stocks benefit from AI-driven demand for compute and power but carry risks: Oracle’s reliance on cloud infrastructure expansion and NuScale’s speculative nuclear energy play. The current dip makes them attractive for long-term investors seeking exposure to AI growth.

Source: The Motley Fool