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Why Oklo Stock Popped on Thursday

Key Points

  • Oklo announced it has completed a "pre-application readiness assessment" for its first NRC reactor license.

  • The company plans to file its application for a license for Phase 1 of its construction plan later this year.

  • Oklo anticipates getting the reactor on line and generating revenue in 2027.

Oklo (NYSE: OKLO) stock jumped 4% through 1:20 p.m. ET Thursday after the small nuclear reactor-builder announced it has completed its Nuclear Regulatory Commission (NRC) "pre-application readiness assessment" for the first part of a combined license application (COLA) to build its "Aurora powerhouse" at Idaho National Laboratory (INL).

People hold hands in a field of flowers outside a nuclear power station.

Image source: Getty Images.

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What does this mean?

Translated into English, this means Oklo is one step closer to building a small modular reactor at INL. More precisely, it's one step closer to being able to apply for permission to build said reactor. (Whether NRC deems the application worthy of approval remains to be seen.)

Put this way, it's less of a needle-mover for the stock, but as Oklo CEO Jacob DeWitte explained, it does indicate that NRC thinks Oklo is on track to file an application with a decent chance of getting it approved.

The next step for Oklo along this journey to approval (now underway for nearly a decade) will be to submit its COLA application, and that should happen later this year.

Is Oklo stock a buy?

Oklo's still a long way away from becoming a viable business, although it's 10 years closer than when it started. Long term, the company intends to build reactors in-house, place them on sites near its customers, then operate the reactors and supply power, charging for electricity much in the same way an ordinary electric utility does.

If all goes as planned, the company's first reactor will go online in 2027, and the company will begin generating revenue that year. Oklo won't turn profitable until 2030, however, according to analysts. Whether the stock is a "buy" at its current $10 billion market cap depends very much on how much profit it will generate that year, and in all the years to come.

Should you invest $1,000 in Oklo right now?

Before you buy stock in Oklo, consider this:

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Did Oklo Stock Drop Today?

Key Points

  • Cantor Fitzgerald initiated coverage of Oklo stock with an overweight rating today.

  • Oklo also announced it will hire Kiewit Nuclear Solutions Co. to help build its first commercial reactor.

  • Things are progressing at Oklo, but the stock costs quite a lot and has no revenue.

Shares of small nuclear reactor-builder Oklo (NYSE: OKLO) tumbled 3.1% through 12:10 p.m. ET Tuesday. Curiously, the news on Oklo today is good, not bad.

Cantor Fitzgerald initiated coverage of Oklo stock with an overweight rating and a $73 price target. No sooner had it done so than Oklo announced it has picked Kiewit Nuclear Solutions Co. to help build its first commercial Aurora powerhouse in Idaho, at Idaho National Laboratory (INL).

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Glowing green nuclear radiation icon.

Image source: Getty Images.

What Cantor says about Oklo

Let's start with the initiation. As The Fly relates, Cantor is calling Oklo key to a global transition to safe nuclear energy. The company's small module reactor technology relies on "proven" fast fission reactors, which should help with Nuclear Regulatory Commission approvals. Cantor expects Oklo to become a "big winner" in the transition to nuclear energy.

Moving next to the INL announcement, Oklo says "pre-construction" work on its new reactor will begin later this year, and "commercial operations [are] targeted for late 2027 to early 2028." Importantly, Oklo also confirmed that it has secured access to the uranium fuel it will need to operate the reactor, and is making "regulatory progress" toward getting it design approved.

Is Oklo stock a buy?

And yet, investors don't seem to be buying the argument -- or the stock, at least not today. Why not?

Valuation's probably one concern. Oklo stock costs $9.2 billion, yet the company has neither profit not even revenue on which to hang a valuation. While analysts do expect revenue to begin in 2027, in line with the "commercial operations" forecast, profits won't arrive until 2030 at the earliest.

It's hard to value a stock with so many unknowns, lasting so many years into the future. And it's hard to call Oklo stock a buy because of this.

Should you invest $1,000 in Oklo right now?

Before you buy stock in Oklo, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

After Skyrocketing More Than 559% Over the Past Year, Can Oklo Stock Continue Powering Higher?

Key Points

  • Oklo, a developer of small modular nuclear reactors, has seen its stock soar over the past year.

  • Political support for the nuclear energy industry can benefit the company in the future.

  • The growth of data centers and radioisotopic production are two trends that can contribute to Oklo's growth.

Amid the current renaissance in the nuclear energy industry, several stocks with exposure to this niche of the energy industry have logged considerable gains recently. Oklo (NYSE: OKLO), for example, has been on an absolute tear, soaring 559.6% as of this writing.

And there's plenty of reasons to believe that the stock can continue to rocket even higher as enthusiasm for nuclear energy increases.

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businessman holds a rocket.

Image source: Getty Images.

What fueled Oklo's rapid rise over the past year

While some growth stocks may log multibagger returns in a single year thanks to merely one catalyst, Oklo's gains stem from several factors. Investors bid the stock higher in late 2024 when the company announced that it had received letters of intent from two data center customers for the deployment of its Aurora powerhouse small modular reactors. In total, the potential deals can provide up to 750 megawatts in capacity across the United States.

The company also announced a nonbinding agreement with Switch -- a company that provides artificial intelligence (AI), cloud, and enterprise data centers -- to deploy 12 gigawatts in Aurora powerhouse projects through 2044.

The start of 2025 also proved to be fruitful for the stock. With Sam Altman's OpenAI announcing the Stargate Project in January, investors raced to purchase Oklo, recognizing that the OpenAI plan to develop data center infrastructure could be a potential boon for the company.

More recently, the executive orders that President Donald Trump signed in May aimed at reinvigorating the nation's nuclear energy industry represented another catalyst for the stock. After decades of Washington's disinterest in development of the nuclear industry, the Trump administration is clearly enthusiastic about its potential.

This nuclear energy stock can be a powerhouse over the long term

For prospective investors or current shareholders, it's reasonable to question whether the stock can continue its meteoric rise. Simply put, the answer is a resounding yes.

With the extraordinary computing demands that generative AI is placing on data centers, AI companies are investing heavily in data center infrastructure. Research from Dell'Oro Group estimates that global spending is expected to soar from $430 billion on data centers in 2024 to $1.1 trillion by 2029. The interest that Oklo received last year from these developers will very likely extend through 2025 and beyond, helping to push the stock higher.

The political goodwill toward the nuclear industry will also benefit the stock. In early June, for example, Oklo notched another victory when the U.S. Nuclear Regulatory Commission agreed to review a report from the company, which could receive regulatory approval for licensing operators for the company's Aurora powerhouse.

Oklo's progress with its subsidiary Atomic Alchemy represents another factor that can lift the stock. In June, work began at a planned radioisotopic production facility in Idaho -- just one of what management expects will be numerous projects that will expand its capabilities in commercial radioisotope production.

While not as widely discussed as data centers and AI, the market for radioisotopic production is expected to experience notable growth in the coming years. According to Credence Research, the market is projected to soar at an 89.7% compound annual growth rate from about $5.68 billion in 2024 to $953 billion in 2032.

Is Oklo the right stock to charge up your portfolio?

Before clicking the buy button on the stock, it's imperative for potential investors to recognize that there are bound to be bumps in the road. Disrupting an industry doesn't come without some volatility, and there's certainly no guarantee that Oklo will prosper as management imagines it will.

So, only investors comfortable with the inherent risks should consider a position. Those who have the resolve to stick with Oklo through the ups and downs may find themselves looking at a stock that provides a considerable return.

Should you invest $1,000 in Oklo right now?

Before you buy stock in Oklo, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

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*Stock Advisor returns as of June 30, 2025

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Oklo Stock Crushed the Market With a 10% Gain on Tuesday

Next-generation nuclear power company Oklo (NYSE: OKLO) was active on the stock market Tuesday. Investors flocked to it on news of a major U.S. state potentially expanding its nuclear-generating capacities. The ongoing conflict in the Middle East might also be shaping market sentiment on alt-energy companies.

Ultimately, Oklo's shares closed the day 10% higher, well ahead of the 1.1% increase of the S&P 500 (SNPINDEX: ^GSPC).

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New York needs nuclear, Hochul claims

Late on Monday, New York Governor Kathy Hochul announced she is directing the New York Power Authority to develop at least one new nuclear power plant. She added this should have 1 gigawatt of electricity-generating potential, at a minimum.

A nuclear power plant photographed in the daytime.

Image source: Getty Images.

In a speech delivered at the state's Niagara County Power Project, a hydroelectric facility located near the Canadian border, Hochul spoke of New York reaching "energy independence" to keep attracting large industrial companies. Numerous regions of upstate New York have been affected by "industrial flight" over the past few decades.

Addressing worries about the safety of nuclear-generating assets, Hochul said that any plant built in the state "will be a model of 21st-century nuclear design with safety at the forefront, automatic safety systems to enhance the containment, and rigorous environmental standards."

Oklo is surely an option

Hochul didn't mention any company that might be a candidate for the project, but Oklo could very well fit the bill. It aims to develop compact nuclear reactors that transform recycled nuclear waste into energy. Oklo watchers should certainly monitor New York's progress with this project, and hold on tight to their shares if the company gets involved in it.

Meanwhile, as of late afternoon Tuesday, the ceasefire in the Iran-Israel conflict seemed to be holding, albeit tentatively. Iran apparently has contingency plans to, in effect, seal off the Strait of Hormuz. This could spike oil prices, depending on how outside producers (such as the OPEC countries) react. Higher oil prices tend to encourage the world to consider alternative energy sources, such as nuclear.

Should you invest $1,000 in Oklo right now?

Before you buy stock in Oklo, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,692!*

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*Stock Advisor returns as of June 23, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Shares in This Nuclear Power Company Surged Higher This Week

Shares in nuclear power company Oklo (NYSE: OKLO) rose by a whopping 28% in the week to Friday morning. The move comes in a busy week for the company, whereby events helped encapsulate the investment case for the stock.

What does Oklo do

The company is developing what it describes as "next-generation fast fission power plants," known as Aurora. Its Aurora powerhouse has a few interesting qualities. First, it's based on a fast fission plant (Experimental Breeder Reactor-II) that the U.S. government operated from 1964 to 1994, so the technology is proven. Second, it's designed to operate either connected to the grid or independently of it -- the latter is a significant advantage when reliable power is needed in remote locations. Third, it can run on fresh or recycled nuclear fuel.

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What happened this week

The big news this week came with the announcement, on Wednesday, of a notice of intent to award (NOITA) Oklo a project to provide power to the Eielson Air Force Base in Alaska -- an attractive prospect for the Department of Defense because Aurora can provide power without being connected to the grid. Oklo will provide power under a long-term power purchase agreement (PPA).

One day later, Oklo announced the pricing of a public offering intended to raise $400 million to $460 million.

A happy investor.

Image source: Getty Images.

Oklo's business model is to build, own, and operate its Aurora powerhouse and sell energy via power purchase agreements (PPAs), rather than selling its powerhouse designs. The upside is that it generates long-term recurring revenue; the downside is that it will require significant capital to build the powerhouses, hence the stock offering, and there is the usual risk of cost overruns in building and operating power plants. Still, the market took a positive view on matters this week.

Should you invest $1,000 in Oklo right now?

Before you buy stock in Oklo, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Oklo and Centrus Energy Stocks Popped, but AES Dropped

Oklo (NYSE: OKLO) stock, a start-up nuclear power company developing mini-nuclear reactors, surged more than 10% yesterday after announcing a partnership with Korea Hydro & Nuclear Power. Alongside Centrus Energy (NYSEMKT: LEU), the company has been riding an even bigger wave of investor enthusiasm that began last week, when President Trump on Friday signed a series of executive orders to promote development of the nuclear power industry in America.

Both stocks are up again modestly today, with Oklo stock rising 1.7% through 10:30 a.m. ET, and Centrus Energy stock up about twice that -- a 3.4% gain.

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In contrast, electric utility AES (NYSE: AES), which does not operate nuclear power plants, seems to be missing out entirely on the nuclear stocks boom. AES stock is down 3.7% today, and down an even more dramatic 52% over the past 52 weeks.

People hold hands in a field of flowers outside a nuclear power station.

Image source: Getty Images.

Oklo and Centrus in the news

Yesterday, Oklo said it will collaborate with its Korean partner to advance the technology of its new Aurora powerhouse, as well as Korea Hydro's own "innovative domestic advanced nuclear technology, the i-SMR." The announcement seems to have caught the attention of investment bank William Blair, which initiated coverage of Oklo stock today with an "outperform" rating.

Oklo plans to build a 75-megawatt Aurora powerhouse at the Idaho National Laboratory site, and says it has another 14 gigawatts of nuclear power plants lined up after that, in its "growing order pipeline." Blair says the company has laid out "a fast-tracked regulatory pathway called a custom combined construction and operating license approval (COLA)" that "will permit Oklo to capture upside from rising electricity prices, especially from premium clean energy PPAs," as StreetInsider.com reports today.

The analyst also likes Oklo's vertically integrated business model, in which the company intends to not only design but also build, own, and operate its own nuclear power plants.

Blair also likes Centrus Energy, but for different reasons. In today's note, the banker pointed out that Centrus currently holds one of only two Nuclear Regulatory Commission (NRC) licenses that have been issued for low-enriched uranium (LEU). Centrus holds the only NRC license issued for enriching uranium to high levels, turning it into what is called "high-assay low-enriched uranium," or "HALEU."

This places Centrus in a prime position to benefit from U.S. government policy to decrease reliance on Russia to sell us enriched uranium for use in U.S. nuclear power plants. And Blair places a value of about $15 billion on this market -- which Centrus apparently owns 50% to 100% of!

Which nuclear power stock should you buy?

Blair values Oklo stock at $70 per share, versus the $55 and change that the stock costs today. The prospect of a 27% profit may tempt investors, but beware: Oklo remains in start-up mode, has no revenue coming in, and isn't expected to begin generating revenue before 2027. Analysts polled by S&P Global Market Intelligence don't expect to see profitability before 2029.

And Centrus?

Blair has a $185 fair valuation on Centrus stock, implying that one could go up as much as 45%. What's more, Centrus is already more of a going concern, with $471 million in revenue collected over the last 12 months, and a very respectable $106 million profit.

At $2.2 billion in market capitalization currently, the stock only costs about 20 times earnings. With a big Trump tailwind at its back, Centrus stock could be a winner.

And what about AES?

What about AES stock, today's big loser?

AES has been in a downtrend since reporting a sizable earnings miss early in the month. (AES was supposed to earn $0.34 per share in Q1, but reported only a $0.27 adjusted profit). The Fly points out that the company's guidance for the rest of this year looked weak as well. And just yesterday, Argus Research analyst John Eade downgraded AES stock to "hold," warning of a "strained" balance sheet and growth prospects that don't get out of the mid-single digits this year.

That may not sound exciting to momentum traders swept up in the nuclear wave this week. But AES stock has a lot to recommend itself to value and dividend investors. Its $7.2 billion market cap and $1.3 billion in trailing earnings mean the stock costs barely 5.5 times trailing earnings, and AES pays a generous dividend yield of nearly 7%.

Does AES also carry a lot of debt? It does -- nearly $30 billion, net of cash on hand. But AES is making good use of its debt to produce profits and divvy out dividends to its shareholders. It may not be as sexy as a nuclear stock, but for long-term, value-focused investors, AES stock may end up as the most rewarding investment of the three.

Should you invest $1,000 in The AES Corporation right now?

Before you buy stock in The AES Corporation, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The AES Corporation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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