Oklo Plans to Build Small Modular Reactors for Data Centers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: NASDAQ.COM
- Market Opportunity and Risks: Oklo, a pre-revenue nuclear power company with a market cap of around $12 billion, plans to provide reliable power to AI data centers through small modular reactors, but faces significant risks related to securing regulatory approval and potential construction delays.
- Technology and Partnerships: The company's Aurora powerhouse is designed to deliver 15-75 megawatts of carbon-free baseload power, and it has inked a deal with data center operator Switch that could reach 12 gigawatts over the next 20 years, indicating substantial market potential.
- Financing and Liquidity: After raising over $1 billion in capital earlier this year, Oklo ended the first quarter with $2.5 billion in liquidity and no debt, providing a solid runway to fund projected capital expenditures of $350 million to $450 million.
- Regulatory Challenges: Although Oklo is pursuing a faster Department of Energy authorization pathway for its first plant at Idaho National Laboratory, its initial application was denied in 2022, highlighting the complex and unpredictable nature of nuclear project regulatory approvals.
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Analyst Views on OKLO
Wall Street analysts forecast OKLO stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 65.390
Low
90.00
Averages
125.11
High
175.00
Current: 65.390
Low
90.00
Averages
125.11
High
175.00
About OKLO
Oklo Inc. is an advanced nuclear technology company. The Company is engaged in developing fast fission power plants to provide clean, reliable, and affordable energy at scale. It is developing advanced fuel recycling technologies in collaboration with the United States Department of Energy and United States National Laboratories. It provides 24/7 clean energy to data centers, factories, industrial sites, communities, and defense facilities. It offers heat and power through power purchase agreements. Its powerhouse product line, Aurora, is designed to be inherently safe, to be able to run on fresh or recycled fuel, and to produce 15-50 megawatts electric (MWe) and with the potential to expand powerhouse size to produce 100 MWe of electricity. The Company intends to develop specialized radioisotope production capabilities to address urgent supply shortages in life-saving medical radioisotopes and advanced industrial applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oklo Advances Small Nuclear Reactor Development
- Nuclear Innovation: Oklo is developing small nuclear reactors designed to use recycled nuclear waste as fuel, with plans to deploy its first Aurora reactor by late 2027 or early 2028, which could significantly enhance the application of clean energy if successful.
- Market Performance Volatility: Since its IPO in May 2024, Oklo's stock surged by 562%, but it has since fallen over 60% from its all-time highs, with a market cap of approximately $12 billion, reflecting cautious optimism about its future potential.
- Regulatory Challenges: The company must secure approval from the Nuclear Regulatory Commission (NRC) to operate commercially, and it faces challenges with the insufficient supply chain for HALEU fuel, which may delay its revenue generation timeline.
- Diversification Strategy: Following the acquisition of Atomic Alchemy in 2025, Oklo is poised to enter the medical and industrial radioisotope markets, which, while not expected to significantly scale the business in the short term, provides a potential diversification pathway for future growth.
See More
NuScale Power Shares Drop 12.5% Amid Market Reassessment
- Significant Price Drop: NuScale Power's shares closed at $10.50 on Friday, down 12.50%, indicating a reassessment of its investment narrative by traders amidst evolving policy support for small modular reactors.
- Surge in Trading Volume: The trading volume reached 49.2 million shares, approximately 45% above the three-month average of 31.2 million shares, highlighting increased market attention on NuScale despite its poor performance.
- Industry-Wide Weakness: Peers like Oklo and Nano Nuclear Energy saw declines of 11.16% and 9.94%, respectively, reflecting broad weakness across SMR developers, as investors adopt a cautious stance towards speculative energy stocks.
- Uncertain Future Outlook: While NuScale could potentially tap into the AI data center market, this transition is still years away, and investors should expect continued volatility until the company reports commercial applications.
See More
Trump Administration's Continued Support for Nuclear Energy Development
- Nuclear Policy Support: President Trump signed an executive order last month aimed at overhauling the Nuclear Regulatory Commission (NRC) to streamline licensing and reduce regulatory barriers, supporting a fourfold increase in U.S. nuclear capacity from 100 GW to 400 GW by 2050, which is expected to significantly accelerate nuclear project development.
- Rise of Small Modular Reactors: EPA Administrator Lee Zeldin emphasized in an interview that the development of small modular reactors is a key component of the Trump administration's push for U.S. energy dominance, driving market interest in companies like NuScale, Oklo, and Nano Nuclear.
- Positive Market Reaction: Following Zeldin's optimistic comments, NuScale shares rose about 5%, while Oklo and Nano Nuclear shares each increased by about 2%, reflecting investor confidence in the nuclear sector, particularly against the backdrop of rising electricity demand from artificial intelligence and data centers.
- Investor Sentiment Optimistic: Despite SMR and OKLO stocks being down 15% and 9% year-to-date, respectively, NNE's stock has risen 26% over the past 12 months, while the VanEck Uranium and Nuclear ETF has increased by 34% in the same period, indicating a long-term bullish outlook on nuclear energy.
See More
Oklo Faces Challenges as Nuclear Reactor Developer
- Market Volatility: Since its IPO in May 2024 at approximately $15.50, Oklo's stock surged by 562% last year but has since fallen over 60% from its all-time highs, currently valued at around $12 billion, indicating market caution regarding its future prospects.
- Technological Innovation: Oklo is developing small nuclear reactors designed to power data centers, remote towns, and military bases, with its flagship Aurora reactor capable of 75 megawatts, utilizing recycled nuclear waste as fuel, showcasing its potential in the clean energy sector.
- Revenue Generation Challenges: Although Oklo aims to deploy its first reactor by late 2027 or early 2028, the lack of a robust high-assay low-enriched uranium (HALEU) supply chain suggests significant revenue generation will be difficult before then, highlighting the uncertainty of its business model.
- Acquisition and Diversification: In 2025, Oklo acquired Atomic Alchemy, expanding its potential into medical and industrial radioisotopes, which, while unlikely to yield immediate profits, provides new avenues for future growth opportunities.
See More
Market Update: Apple and Nasdaq Streaks at Risk
- S&P 500 Streak at Risk: The S&P 500 fell on Wednesday, jeopardizing its nine-week winning streak, and if it finishes higher this week, it would mark its longest winning streak since 1985, indicating fragile market sentiment.
- Apple's Price Challenge: Apple is on track for its 11th consecutive positive week, which would be its longest winning streak since November 2004, reflecting high investor interest in its future performance amidst market volatility.
- Nvidia's Underperformance: Over the past 60 trading days, the iShares Semiconductor ETF surged over 82%, while Nvidia only gained 16%, creating a record 65-percentage-point gap, highlighting Nvidia's relative weakness in the semiconductor market.
- Private Equity Turmoil: Private equity stocks plummeted after Partners Group reportedly capped investor withdrawals, with KKR, Blackstone, Carlyle Group, and Blue Owl losing over a quarter of their market value this year, reflecting declining confidence in the private equity sector.
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- Surging Market Demand: The International Energy Agency projects a 40% to 50% increase in global electricity demand by 2035, driven by AI data centers and industrial growth, positioning General Fusion favorably in the evolving energy landscape.
- Clear Transaction Details: The business combination with Spring Valley Acquisition Corp. III implies a pro forma equity value of approximately $1 billion, including a $107.7 million oversubscribed private placement from institutional investors, reflecting strong market interest in fusion energy.
- Defined Use of Funds: General Fusion has raised over $400 million from institutional investors and government grants, intending to utilize these proceeds to advance its Lawson Machine 26 (LM26) demonstration program, marking a significant step towards commercialization.
- Active Industry Engagement: General Fusion plans to participate in several investor and industry conferences throughout June, signaling its transition from a private research entity to a public company, with an anticipated Nasdaq listing in mid-2026 to enhance its market visibility.
See More
Oklo Advances Small Nuclear Reactor Development
- Nuclear Innovation: Oklo is developing small nuclear reactors designed to use recycled nuclear waste as fuel, with plans to deploy its first Aurora reactor by late 2027 or early 2028, which could significantly enhance the application of clean energy if successful.
- Market Performance Volatility: Since its IPO in May 2024, Oklo's stock surged by 562%, but it has since fallen over 60% from its all-time highs, with a market cap of approximately $12 billion, reflecting cautious optimism about its future potential.
- Regulatory Challenges: The company must secure approval from the Nuclear Regulatory Commission (NRC) to operate commercially, and it faces challenges with the insufficient supply chain for HALEU fuel, which may delay its revenue generation timeline.
- Diversification Strategy: Following the acquisition of Atomic Alchemy in 2025, Oklo is poised to enter the medical and industrial radioisotope markets, which, while not expected to significantly scale the business in the short term, provides a potential diversification pathway for future growth.
See More
NuScale Power Shares Drop 12.5% Amid Market Reassessment
- Significant Price Drop: NuScale Power's shares closed at $10.50 on Friday, down 12.50%, indicating a reassessment of its investment narrative by traders amidst evolving policy support for small modular reactors.
- Surge in Trading Volume: The trading volume reached 49.2 million shares, approximately 45% above the three-month average of 31.2 million shares, highlighting increased market attention on NuScale despite its poor performance.
- Industry-Wide Weakness: Peers like Oklo and Nano Nuclear Energy saw declines of 11.16% and 9.94%, respectively, reflecting broad weakness across SMR developers, as investors adopt a cautious stance towards speculative energy stocks.
- Uncertain Future Outlook: While NuScale could potentially tap into the AI data center market, this transition is still years away, and investors should expect continued volatility until the company reports commercial applications.
See More
Trump Administration's Continued Support for Nuclear Energy Development
- Nuclear Policy Support: President Trump signed an executive order last month aimed at overhauling the Nuclear Regulatory Commission (NRC) to streamline licensing and reduce regulatory barriers, supporting a fourfold increase in U.S. nuclear capacity from 100 GW to 400 GW by 2050, which is expected to significantly accelerate nuclear project development.
- Rise of Small Modular Reactors: EPA Administrator Lee Zeldin emphasized in an interview that the development of small modular reactors is a key component of the Trump administration's push for U.S. energy dominance, driving market interest in companies like NuScale, Oklo, and Nano Nuclear.
- Positive Market Reaction: Following Zeldin's optimistic comments, NuScale shares rose about 5%, while Oklo and Nano Nuclear shares each increased by about 2%, reflecting investor confidence in the nuclear sector, particularly against the backdrop of rising electricity demand from artificial intelligence and data centers.
- Investor Sentiment Optimistic: Despite SMR and OKLO stocks being down 15% and 9% year-to-date, respectively, NNE's stock has risen 26% over the past 12 months, while the VanEck Uranium and Nuclear ETF has increased by 34% in the same period, indicating a long-term bullish outlook on nuclear energy.
See More
Oklo Faces Challenges as Nuclear Reactor Developer
- Market Volatility: Since its IPO in May 2024 at approximately $15.50, Oklo's stock surged by 562% last year but has since fallen over 60% from its all-time highs, currently valued at around $12 billion, indicating market caution regarding its future prospects.
- Technological Innovation: Oklo is developing small nuclear reactors designed to power data centers, remote towns, and military bases, with its flagship Aurora reactor capable of 75 megawatts, utilizing recycled nuclear waste as fuel, showcasing its potential in the clean energy sector.
- Revenue Generation Challenges: Although Oklo aims to deploy its first reactor by late 2027 or early 2028, the lack of a robust high-assay low-enriched uranium (HALEU) supply chain suggests significant revenue generation will be difficult before then, highlighting the uncertainty of its business model.
- Acquisition and Diversification: In 2025, Oklo acquired Atomic Alchemy, expanding its potential into medical and industrial radioisotopes, which, while unlikely to yield immediate profits, provides new avenues for future growth opportunities.
See More
Market Update: Apple and Nasdaq Streaks at Risk
- S&P 500 Streak at Risk: The S&P 500 fell on Wednesday, jeopardizing its nine-week winning streak, and if it finishes higher this week, it would mark its longest winning streak since 1985, indicating fragile market sentiment.
- Apple's Price Challenge: Apple is on track for its 11th consecutive positive week, which would be its longest winning streak since November 2004, reflecting high investor interest in its future performance amidst market volatility.
- Nvidia's Underperformance: Over the past 60 trading days, the iShares Semiconductor ETF surged over 82%, while Nvidia only gained 16%, creating a record 65-percentage-point gap, highlighting Nvidia's relative weakness in the semiconductor market.
- Private Equity Turmoil: Private equity stocks plummeted after Partners Group reportedly capped investor withdrawals, with KKR, Blackstone, Carlyle Group, and Blue Owl losing over a quarter of their market value this year, reflecting declining confidence in the private equity sector.
See More
General Fusion Plans Public Listing with Approximately $1 Billion Transaction
- Surging Market Demand: The International Energy Agency projects a 40% to 50% increase in global electricity demand by 2035, driven by AI data centers and industrial growth, positioning General Fusion favorably in the evolving energy landscape.
- Clear Transaction Details: The business combination with Spring Valley Acquisition Corp. III implies a pro forma equity value of approximately $1 billion, including a $107.7 million oversubscribed private placement from institutional investors, reflecting strong market interest in fusion energy.
- Defined Use of Funds: General Fusion has raised over $400 million from institutional investors and government grants, intending to utilize these proceeds to advance its Lawson Machine 26 (LM26) demonstration program, marking a significant step towards commercialization.
- Active Industry Engagement: General Fusion plans to participate in several investor and industry conferences throughout June, signaling its transition from a private research entity to a public company, with an anticipated Nasdaq listing in mid-2026 to enhance its market visibility.
See More
