Oklo Stock Is Exploding On AI-Energy Dreams — But Fundamentals Are Struggling To Keep Up
At current levels, there is a lot of optimism around Oklo, but concerns regarding pre-revenue growth have also been visible, with the stock enjoying momentum before anything material has emerged.
- At its peak this year, Oklo’s stock jumped over 775% to hit a record high of $185.96 in October, compared to the close of $21.23 on Dec. 31, last year.
- Citi believes investors may be disappointed by this news, given the lack of sequential pipeline growth.
- In September, Oklo shares saw a boost following the signing of the Technology Prosperity Deal by U.S. President Donald Trump and Prime Minister Keir Starmer a day earlier.
This Sam Altman-backed nuclear reactor company has seen what one can call a meteoric rise this year, even at a pre-revenue stage, when there is no solid ground to bet on the company, has seen heavy interest from investors and the U.S. government alike.
Oklo is being set up as a company to boost AI infrastructure and is currently developing fast-fission power plants to deliver clean, reliable, and affordable energy at scale.
The company was the first to receive a site use permit from the U.S. Department of Energy (DOE) for a commercial advanced fission plant and submitted the first custom combined license application for an advanced reactor to the U.S. Nuclear Regulatory Commission.
At its peak this year, Oklo’s stock jumped over 775% to hit a record high of $185.96 in October, compared to the close of $21.23 on Dec. 31, last year. The stock has jumped by over 262% so far this year, driven by several factors, including partnerships with Vertiv and participation in DOE programs.
Oklo’s Pre-Revenue Growth
The company is still in the pre-revenue stage with no apparent signs of revenue generation in the near term. Media reports have noted that the company is expected to only generate revenue in 2027.
Data centers powered by AI are seeing heavy demand, and Oklo’s boost is seen as nuclear energy eventually becoming a driving force for AI infrastructure. In November, Citi said that even though Oklo still expects the first reactor to begin operations in 2027 or 2028, its new focus on using Department of Energy authorization could push the plan further out.
Citi believes investors may be disappointed by this news, given the lack of sequential pipeline growth. This had led the stock to pare gains from October.
The Technology Prosperity Deal
In September, Oklo shares saw a boost following the signing of the Technology Prosperity Deal by U.S. President Donald Trump and Prime Minister Keir Starmer a day earlier.
The White House has noted that this deal would help build commercial partnerships to accelerate the deployment of advanced nuclear reactors in both the U.S. and the U.K.
In November, Oklo announced that the DOE Idaho Operations Office has approved the Nuclear Safety Design Agreement for the Aurora Fuel Fabrication Facility (A3F) at Idaho National Laboratory, selected to participate in the DOE’s Advanced Nuclear Fuel Line Pilot Projects.
The Sam Altman Connection
In April this year, the company said that Sam Altman would step down as Chairman of the board. Altman has guided Oklo’s development since its inception and positioned it to execute on its mission. The company’s CEO and co-founder, Jacob DeWitte, will serve as Chairman.
How Are Stocktwits Users Reacting?
Retail sentiment on Oklo has jumped to ‘neutral’ from ‘extremely bearish’ three months ago, with message volumes at ‘low’ levels, according to data from Stocktwits.
The stock has seen a whopping 183% jump in users on Stocktwits, adding it to their watchlist in the last year.
Shares of Oklo have gained 225% in the last 12 months, while the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up 16% and the Invesco QQQ Trust ETF (QQQ) surged 18%.
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