Giant magnetostrictive materials (GMMs) have broad application prospects in the field of servo valves, but the giant magnetostrictive actuator (GMA) has problems such as large loss and severe heat generation, which affect the output effect and accuracy. To solve these problems, this paper designs a stacked giant magnetostrictive actuator (SGMA) and analyzes the magnetic circuit and magnetic field distribution of the SGMA. Based on the magnetic field analysis and the Jiles–Atherton model, we analyze the SGMA magnetization model, simplify the traditional model, and give a solution for the simplified model using the Runge–Kutta method. We analyze the eddy current loss of the SGMA, and according to Bessel’s equation and the Kelvin function, we calculate the relationship among eddy current loss, GMM rod radius, and magnetic field frequency. By analyzing the inherent hysteresis of GMMs, a hysteresis loss model of the SGMA is established in this paper. We also calculate the coil impedance and obtain the coil loss model. Based on the loss model, the SGMA cooling system is designed. Based on the above analysis, we design a SGMA prototype, set-up the corresponding experimental platform, and conduct the necessary experiments. The experimental results show that the SGMA responds well to different signals, but as frequency increases, attenuation, deformation, and hysteresis become more pronounced, which verifies the amplitude and phase changes caused by various losses in the theoretical analysis. The experiment also observes the temperature rise of the oil-cooled SGMA at different frequencies, indicating that the cooling system can effectively control the temperature change of the SGMA, which validates the foregoing analysis.