Oklo

It seems as if all eyes are on Oklo (OKLO 1.39%) right now. Shares have surged in value by more than 700% since April. But when you look closer, Oklo’s entire industry is skyrocketing. Nuscale Power, another company focused on small modular nuclear reactors, has seen its valuation nearly quadruple since April.

Why are stocks like Oklo and Nuscale rising exponentially? There’s one primary factor to be aware of now for investors to consider.

Small-scale nuclear power may soon be a reality

For decades, small modular nuclear reactors have been relegated only to science fiction. In theory, the technology makes a lot of sense. Small modular reactors, commonly referred to as SMRs, can be deployed anywhere in the world, even in remote locations without any road access. Once built, they can produce fairly affordable power with minimal carbon emissions. And they don’t have as many issues with generation intermittency as other renewable energy sources like wind or solar.

Companies like Oklo and Nuscale, however, claim that they are just a handful of years away from constructing the world’s first commercial SMRs. Nuscale is already certified by the Nuclear Regulatory Council in the U.S. Oklo is currently in the application process. If successful, this industry could upend the global energy paradigm, delivering low-cost, low-carbon fuel at any scale, anywhere in the world.

Image source: Getty Images.

Here’s the problem: We still don’t know if what these companies are promising is even possible. Neither Oklo nor Nuscale has any existing orders from customers. And analysts are ready to point out the industry’s consistent failures over the years.

Many of these failures weren’t technological, but simply a matter of cost, with huge cost overruns the norm throughout history. “The technical and extreme cost challenges of SMRs has been known and widely reported on for years, raising the question of why the hype continues to grow,” observes Jim Green, a member of the Nuclear Consulting Group.

Nuclear reactor builder Oklo (OKLO -0.13%) stock jumped 2.4% through 11:25 a.m. ET Thursday.

For that, you can thank the friendly analysts at Canaccord Genuity.

Image source: Getty Images.

Canaccord loves Oklo

Canaccord Genuity initiated coverage of nuclear company Oklo with a buy rating and a $175 price target on this $137 stock, as StreetInsider.com reports today. That may sound like a high price for a start-up with no revenue that isn’t expected to have revenue for another couple years, nor earn its first profit before 2030. But here’s the thing:

Canaccord isn’t thinking about 2030 here. It’s looking much farther out, with “our model stretching to 2050.”

Peering 25 years into the future, Canaccord sees “a new nuclear age emerging; one where nuclear assets grow not only in volume but as a percentage of the global energy mix.” Canaccord expects Oklo to play an outsize role in this future. “Vertically integrated,” boasting a “deftly constructed strategy” for rolling out small nuclear plants, and good “technology capabilities,” Canaccord is placing a bet on Oklo not just surviving until 2030, but going on to profit from the new nuclear renaissance.

Is Oklo stock a risky buy?

What makes Canaccord so confident about Oklo? With $530 million in the bank and a $53 million cash burn rate, it looks at first glance like Oklo has all the money it needs (and more) to last until profits arrive in 2030.

Problem is, most analysts think Oklo’s cash burn will accelerate dramatically as it approaches commercialization (and profit). Cash consumption over the next five years could actually reach $1.5 billion, which is more than Oklo has handy just right now.

Bright as its future looks, Oklo still needs to come up with even more cash, or else it will go bust.

Investors who bought shares of Oklo (OKLO 12.73%) before its stock surged 50% in mid-September were probably thrilled when share prices of the nuclear reactor start-up hit $142 on Sept. 23.

They — along with anyone who jumped in on Sept. 23 — probably weren’t feeling quite so festive at the end of that week. The company’s shares crashed below $111 on Sept. 26. They’ve risen a bit since then, but it’s fair to ask whether the company’s stock price slump is here to stay.

Here’s why investors shouldn’t worry about the recent slump, even if the stock continues to be volatile.

Image source: Getty Images.

It’s a hard-knock life

Startups often experience big swings in share price, and Oklo is one of the “start-uppiest” start-ups you’ll find in the nuclear energy space.

Founded in 2013 by two MIT graduate students, Oklo went public via a merger with one of artificial intelligence (AI) guru Sam Altman’s special purpose acquisition companies (SPACs) in May 2024. It has big plans for a small modular nuclear reactor (SMR), but it hasn’t actually built even a working prototype of one, let alone made money from one. So it’s a very speculative stock, and not a good choice for risk-averse investors.

Given all the question marks surrounding Oklo’s potential as an investment, it’s unsurprising that the stock has seen some big swings in valuation, including the recent dip.

Betting on the tech

In addition to being a start-up operating in a relatively new and untested technology sector, Oklo’s proposed SMR differs from the “standard” SMR design.

Oklo is building a sodium-cooled “fast reactor” SMR, which is a niche type of reactor, even for the SMR space. Full-size fast reactors have been shown to be more efficient than the traditional water-cooled reactors used in most nuclear plants, and Oklo believes that these benefits could carry over to the SMR versions. In theory, they could be powered using spent fuel from existing reactors instead of fresh enriched uranium fuel, which would be an added benefit.

But none of this has yet been borne out under real-world conditions. Until it is, expect more volatility.

Small news, big impact

One reason these factors are likely to cause such wild swings in Oklo’s stock is that there’s not a lot to go on as far as company valuation. It’s too early for traditional valuation metrics like price-to-sales or price-to-earnings ratios. There’s not a lot the company can report about operational progress yet. That means minor news reports and rumors are all investors have to go on in many cases. As speculators pile in and out of the stock based on these tidbits of information, the share price swings wildly.

Take, for example, the news that Oklo held a groundbreaking ceremony for its first-ever Aurora Powerhouse SMR in mid-September. News reports about that groundbreaking caused the stock to abruptly skyrocket. But the groundbreaking was hardly a secret: The company had been saying for months it was expected to occur in the third quarter of 2025 (which it did). It had completed site characterization in May and selected a builder in July. The project is part of a government program with a proposed end date of July 2026. Anyone could have predicted that a groundbreaking was imminent. But news that it happened sent the stock soaring:

Similarly, the drop in share price since the groundbreaking is likely caused by investors taking profits after a massive stock run-up. The important thing to remember is that there seems to be plenty of upside for Oklo’s stock from here, if it can actually deliver on its technology. If you’re a risk-tolerant investor looking for a nuclear energy stock that could soar, it may be a good time to consider buying the dip.

With investor sentiment around nuclear energy gathering momentum by the day, Oklo (OKLO 12.02%) has become unstoppable. The nuclear energy stock surged 11.9% today to all-time highs of $92.48 per share, as of 1 p.m. ET Monday.

Oklo stock has risen a jaw-dropping 330% in 2025 so far, as of this writing. Yes, you read that right, and today, you may thank President Donald Trump for sending the red-hot stock to a new all-time high.

Image source: Getty Images.

Nuclear power deals incoming

In a press statement released this morning, the U.K. government of revealed a flurry of deals that it will sign with the U.S. this week during Trump’s state visit to the nation. The U.K. government says it is the “golden age of nuclear power.”

The landmark partnership between the U.S. and the U.K. called the Atlantic Partnership for Advanced Nuclear Energy seeks to speed up the development and deployment of nuclear energy projects in both countries. The list of projects to be inked include multibillion-dollar deals, including plans to build up to 12 advanced modular reactors and develop data centers powered by small modular reactors (SMRs) in the U.K.

Although most of the deals are between private companies for now, the partnership will open the U.K. market to U.S. nuclear energy players, potentially paving the way for billions of dollars in investments between the two countries.

Investors believe Oklo could benefit, too, especially given its relationship with the U.S. Department of Energy (DOE).

Oklo stock deserves the attention, but…

Oklo is developing a small, modular fast-fission nuclear power plant called the Aurora powerhouse that can supply clean nuclear energy 24/7 and can even use recycled fuel. Oklo already has a site permit from the DOE to set up a commercial plant in Idaho, is in a DOE reactor pilot program, and has fuel supply agreements with the DOE, among other things.

Oklo is also focused on nuclear waste recycling. Just days ago, the company announced plans to build a $1.68 billion fuel recycling facility in Tennessee.

Oklo’s multifaceted relationship with the DOE and recent partnerships for data centers have sent the stock to the moon. The attention isn’t unwarranted, but with its market capitalization already crossing $13 billion, the valuations for a start-up that could still take years to commercialize its first product and generate any revenue look too stretched for comfort now.

Nuclear stocks are hot right now as electricity usage continues its artificial intelligence (AI)-fueled rise. Nuclear start-up Oklo (OKLO 0.26%) has been one of the hottest, with shares trading up more than 225% already this year.

Even though Oklo hasn’t built a single small modular reactor (SMR), and even though it’s up against some fierce competition, and even though it’s a risky bet, I’m predicting that Oklo will be a millionaire-maker stock.

Here’s why I’m so confident.

Oklo is all in on AI

Most nuclear companies don’t particularly care who their customers are: Their reactors generate electricity, and they’ll sell it to whoever’s willing to pay for it. Oklo has taken a different approach, specifically tailoring parts of its investment pitch to AI providers.

Image source: Getty Images.

In July, Oklo announced a collaboration agreement with digital infrastructure company Vertiv (VRT -1.34%) to co-develop thermal management solutions for hyperscale data centers co-located with and powered by Oklo’s nuclear power plants. The collaboration makes sense because both data centers and nuclear reactors generate lots of heat and require heavy-duty industrial cooling systems.

This AI focus isn’t particularly surprising given Oklo’s history. It went public in 2024 through a merger with AltC Acquisition, a SPAC helmed by OpenAI founder Sam Altman. Altman himself served as Oklo’s board chair until April, when he stepped down to allow the company to pursue deals with AI companies other than OpenAI.

Oklo apparently has friends in high places

Besides Altman, Oklo has its fair share of big investors. Cathie Wood‘s Ark Invest owns a stake, for example. But the company has some even more powerful players in its corner.

Oklo seems to have found a friend in the Trump administration, which has promoted nuclear power even as it has canceled funding for solar and wind projects. But even beyond its general support for nuclear energy, the Trump administration seems to hold Oklo in particularly high regard.

The U.S. Department of Energy recently selected 11 projects for its Nuclear Reactor Pilot Program. Two of these are Oklo projects, and a third is a project of Oklo’s subsidiary Atomic Alchemy. No other company had more than one of its projects selected. The program’s stated goal is to have three reactors operational by July 4, 2026, and it seems ready to provide extra help to make that happen.

A little success

In spite of all these elements — powerful backers, government support, AI buzz — there’s still the very real possibility that Oklo might never get off the ground. SMRs are still a relatively unproven technology, with only a handful operational anywhere in the world (and none in the U.S.). Unforeseen technical issues or design flaws could delay Oklo’s projects enough that competitors bring viable products to market first, shutting Oklo out. Oklo’s design might fail to deliver the promised output or end up costing too much to be viable. In short, a lot could go wrong here for investors.

That said, Oklo could become a millionaire-maker stock well before it ever fully deploys its technology at scale. If Oklo can bring one of its SMR prototypes online by 2027 as planned, and that prototype performs well enough to convince some big AI companies to place orders for Oklo-powered data centers, the company’s share price is likely to skyrocket in anticipation of future business, rewarding investors who buy in now.

Even though it’s a speculative investment that might not pan out, I think Oklo’s potential makes it worth a look for risk-tolerant investors.

When most investors think about artificial intelligence (AI) opportunities, their attention naturally turns to companies in the technology sector. But if you’ve been following the story closely over the past couple of years, you’ll know that one of AI’s most critical challenges lies elsewhere: energy storage and power generation.

The surge in AI computing capacity is placing unprecedented strain on the U.S. power grid, pushing alternative solutions — particularly nuclear energy — to the forefront of the conversation.

One company gaining traction in the space is Oklo (OKLO 4.90%). Promising breakthroughs in next-generation nuclear microreactors, Oklo has quickly captured the attention of growth investors. The question now: could Oklo become the “next Nvidia” and define its industry for decades to come?

Nvidia’s early edge

When Nvidia first introduced the graphics processing unit (GPU) in the late 1990s, few understood the transformative potential of the technology. At the time, GPUs were largely embraced by video game players seeking better and faster graphics performance. But Nvidia’s visionary CEO, Jensen Huang, recognized something others didn’t — its parallel processing chips could address other latent needs and handle a broader range of computational challenges.

Fast-forward to today, and GPUs have evolved from a niche gaming product into the backbones of generative AI infrastructure — providing the specific type of processing muscle required for applications ranging from cybersecurity to autonomous vehicles to robotics and beyond.

The key takeaway here is that while Nvidia’s GPU business started with limited traction, it ultimately achieved true product-market fit — laying the foundation for an empire as the use cases for the chips multiplied and the technology became indispensable.

Image source: Getty Images.

Oklo looks promising, but…

Oklo has quickly captured investor attention thanks to its unique positioning at the intersection of energy and AI. One major catalyst for the company is OpenAI CEO Sam Altman, who previously served as chairman of Oklo’s Board. Altman’s name recognition and influence have undoubtedly elevated Oklo’s profile and helped fuel its narrative as a potential multibagger in the AI energy landscape.

Beyond star power, Oklo also benefits from a growing network of high-profile partnerships. Collaborations with the Department of Energy (DOE), the U.S. military, and private sector infrastructure players such as Vertiv and Liberty Energy underscore the company’s credibility. These alliances not only offer some validation to Oklo’s technology, but also highlight the strategic importance of its microreactors as potential sources for clean and efficient energy.

…comparing it to Nvidia is a stretch

While Oklo has drawn the attention of government agencies and AI sector power players, the company has yet to deliver a tangible product. Unlike Nvidia’s GPU business in the late 1990s, which was already mass-producing chips and gaining early adopters, Oklo has not yet built an operational reactor. No power is being generated at scale, and it has no billable customers in place. In other words, Oklo’s value proposition to the AI industry is entirely speculative — a critical distinction when benchmarked against Nvidia’s early position.

OKLO data by YCharts.

The stock chart above illustrates this disconnect. Oklo’s shares have surged by nearly 800% over the past year, pushing its market cap to $9.7 billion — a figure that equals nearly 26 times Nvidia’s combined 1999 and 2000 revenue. That type of premium is difficult to justify for a company with no revenue, a hefty capital expenditure budget, and a path forward that will hinge largely on winning regulatory approvals.

Oklo stock remains a speculative gamble, and its narrative increasingly resembles what one would expect from a meme stock rather than a sustainable growth story. Its rally over the past year has been largely fueled by hype-driven momentum and enthusiasm from unsuspecting retail investors.

In my view, Oklo is far from the next Nvidia. If anything, the stock already appears to have priced in most (if not all) of its potential upside. Chasing the stock’s current momentum could leave investors holding the bag when reality kicks in.