Better Artificial Intelligence (AI) Stock: Palantir vs. Oklo

Key Points

• Palantir's AI platform is generating real revenue with 48% growth and GAAP profitability, while Oklo won't see revenue until 2027.

• Oklo's microreactors could solve AI's power bottleneck, but licensing and construction risks make it a multiyear speculation.

• Palantir offers the cleaner AI exposure after risk adjustment, though Oklo's 1,568% surge over the prior 12 months shows market appetite for the power thesis.

• 10 stocks we like better than Palantir Technologies ›

Two stocks, two very different artificial intelligence (AI) plays. Palantir Technologies (NASDAQ: PLTR) is monetizing AI software today. Oklo (NYSE: OKLO) aims to supply the nuclear power AI will need tomorrow.

With Palantir up 382% and Oklo surging 1,568% over the past 12 months, investors clearly see opportunity in both. But which of these high-powered growth stocks deserves your capital right now?

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Image source: Getty Images.

The operating reality

Palantir is firing on all cylinders. Second-quarter 2025 revenue jumped 48% year over year (YOY) to reach new highs, with U.S. commercial revenue surging 93% YOY -- showing where the real acceleration is happening. The company posted GAAP earnings of $0.13 per share and achieved GAAP profitability -- actual profits, not adjusted metrics. Its Artificial Intelligence Platform (aka AIP) has moved from pilot programs to production deployments across commercial enterprises.

The edge lies in combining secure data integration with customizable AI tools, a combination that resonates with both governments and enterprises navigating strict compliance requirements. Management guided third-quarter growth to 50% YOY and raised full-year 2025 revenue guidance. This isn't speculative AI potential; Palantir is an at-scale software vendor with accelerating commercial adoption and expanding margins.

The nuclear moonshot

Oklo operates in a different universe. The company has no commercial revenue yet and doesn't expect first power until late 2027 or early 2028, pending licensing. Instead of software, Oklo is developing Aurora microreactors -- 75-megawatt, liquid-metal-cooled fast reactors designed to provide always-on, site-level power for data centers and defense customers.

The thesis is compelling: As AI compute scales up, electricity -- not chips -- has become the constraint. U.S. data centers already consume 4.4% of electricity and could reach 6.7% to 12% by 2028.

Last year, Oklo signed a nonbinding 12-gigawatt framework agreement with the premier AI provider Switch. It was also named the intended awardee for a U.S. Air Force Alaska microreactor contract, conditional on Nuclear Regulatory Commission licensing. If Aurora clears regulatory and build hurdles, Oklo could be a first mover in distributed, carbon-free baseload power -- precisely what hyperscale AI sites require.

Risk versus reward

Here's where paths diverge sharply. Palantir trades at rich multiples -- the price of proven execution in a red-hot market. But you're buying a business generating cash today with clear quarterly milestones. The main risk isn't just valuation compression but whether AIP adoption outside the U.S. can scale at the same pace as domestic growth.

Oklo is pure story stock. No revenue model exists to value it traditionally. Share price swings entirely on regulatory updates, partnership announcements, and broader nuclear sentiment. Beyond licensing delays and construction risks, financing remains a question mark -- building reactors requires massive capital. Any setback could crater the stock. Yet if Oklo delivers on its vision, early investors could see transformational returns in the decades ahead.

The power play reality

Oklo's appeal stems from AI's emerging bottleneck: electricity. Nvidia's recent $100 billion OpenAI partnership highlighted the need for nuclear-reactor-scale power. That dynamic makes Oklo's microreactor promise tantalizing for investors seeking the next constraint trade.

But timing matters. Oklo's first 75-megawatt reactor won't deploy until late 2027 at best. Nuclear projects historically tend to face delays. Meanwhile, Palantir generates returns quarterly.

The verdict

For investors seeking the better AI stock today, Palantir wins. It has visible revenue, expanding margins, and real customers generating actual returns. Oklo is a lottery ticket -- potentially transformative, but years away from proving its model.

Smart portfolios might include both, but if you're choosing one, pick the company making money now over the one promising reactors later. In AI's evolution, execution beats aspiration -- and right now, Palantir is executing while Oklo is still building its case.

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George Budwell has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.