BofA Cautions That Oklo and NuScale's Stock Gains Are Driven by Overly Optimistic Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 30 2025
0mins
Should l Buy OKLO?
Source: MarketWatch
Nuclear Energy Stocks Surge: Stocks in the nuclear-energy sector, particularly Oklo Inc. and NuScale Power Corp., have seen significant increases, with Oklo's shares rising over 400% and NuScale's over 100% in 2025, driven by the demand for energy to support artificial intelligence initiatives.
Analyst Concerns on Valuations: Bank of America analyst Dimple Gosai cautions that the current valuations of these stocks may be based on "unrealistic" expectations regarding the deployment of small modular reactors, which, while easier and cheaper to build, have lower power-generating capacity compared to traditional nuclear reactors.
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Analyst Views on OKLO
Wall Street analysts forecast OKLO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OKLO is 125.11 USD with a low forecast of 90.00 USD and a high forecast of 175.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 79.620
Low
90.00
Averages
125.11
High
175.00
Current: 79.620
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.
2026 Energy Stocks Investment Outlook
- Market Performance Continues: The S&P 500 has gained 1% year-to-date in 2026, with analysts predicting a fourth consecutive double-digit return, indicating that investors need to be selective as not all growth stocks will continue to win.
- Oklo's Nuclear Innovation: Oklo is designing small reactors and has begun construction of its first Aurora powerhouse at Idaho National Laboratory, aiming to demonstrate this technology before America's 250th anniversary in 2026; despite no revenue yet, its progress could position it as a key utility player for future data centers.
- Bloom Energy's Growth Potential: Bloom Energy manufactures solid oxide fuel cells that generate power from various fuel sources and has a long list of blue-chip customers; as it integrates its technology into AI infrastructure, significant revenue increases and stock price growth are anticipated.
- NuScale's Market Opportunities: NuScale's small modular reactor has received regulatory approval, and while it lacks a first customer, its involvement in multiple projects could lead to rapid deployment in real-world settings, despite facing uncertainties regarding costs and market dynamics.
See More
NuScale Power's Future with Small Modular Reactors
- Innovative Technology Potential: NuScale Power is developing small modular reactors (SMRs) that can be scaled from one to twelve units based on demand, aiming to provide reliable power solutions for facilities like data centers, which could significantly transform nuclear energy usage if successful.
- Market Opportunities and Challenges: Although NuScale is the only U.S. company with NRC approval for an SMR design, it has yet to achieve commercial deployment, with a current market cap of about $6 billion, which could seem undervalued if successful, yet its stock is still trading over 60% below its 52-week high.
- Project Progress Delays: Collaborations with Romania and the Tennessee Valley Authority have not yet materialized, and while these projects could be groundbreaking, the uncertainty surrounding construction costs led to the cancellation of the Carbon Free Power Project with Utah Associated Municipal Power Systems in late 2023.
- Investment Risks and Returns: Despite the potential demand and scalability of NuScale's SMR technology, investors should recognize the lack of a successful commercialization track record, as the company presents a high-risk, high-reward investment opportunity that could significantly enhance portfolio value over the next decade.
See More
Oklo Shares Decline Amid Geopolitical Risk Reassessment
- Stock Price Decline: Oklo Inc (NYSE:OKLO) shares fell 6.23% to $74.66 on Monday, primarily due to investors reassessing the geopolitical risk premium associated with Iran's nuclear program, leading to a broad pullback in uranium and nuclear energy stocks.
- Impact of Nuclear Talks: The resumption of nuclear talks between Iran and the U.S. in Istanbul may reduce expectations for uranium supply disruptions, thereby lowering the 'fear premium' on uranium prices, which puts pressure on stocks like Oklo that are tied to nuclear energy.
- Technical Indicator Analysis: Oklo's current stock price is 18.4% below its 20-day simple moving average and 30% below its 100-day simple moving average, indicating significant short-term weakness, despite a 62.45% increase over the past 12 months.
- Analyst Ratings and Targets: Despite facing short-term pressure, Oklo's stock carries a 'Buy' rating from analysts, with an average price target of $112.69, reflecting confidence in its long-term growth potential.
See More
Oklo Stock Drops Amid Nuclear Policy Announcement
- Stock Decline: Oklo's stock fell 8.3% to $84.49 by 10:10 a.m. ET Thursday, reflecting market concerns over the U.S. Department of Energy's new nuclear policy, despite the potential to attract $50 billion in private investment.
- Lack of Support: The DOE's announcement regarding the modernization of the nuclear fuel cycle did not mention Oklo, indicating potential risks for the company in securing government backing for future nuclear innovation campuses.
- Unclear Investment Opportunities: While the innovation campuses could bring significant investment to the nuclear sector, Oklo's exclusion from the plans suggests the company may need to fund future nuclear facility developments independently, increasing financial strain.
- Market Reaction: The absence of specific funding allocations and support has led investors to adopt a cautious stance on Oklo's future, potentially placing the company at a disadvantage in the competitive nuclear energy market.
See More
Top Performing U.S. Utilities Stocks in January 2026
- Leading Performance: Oklo (OKLO) tops the January 2026 performance list with a 10.86% increase, indicating strong growth potential in the electric utilities sector that may attract more investor interest.
- Close Competitors: NextEra Energy (NEE) and Pinnacle West Capital (PNW) follow with gains of 8.38% and 7.19%, respectively, suggesting robust overall performance in the electric utilities sector that could boost industry confidence.
- Diverse Performance: NiSource (NI) and Consolidated Edison (ED) achieved increases of 6.40% and 6.09%, demonstrating resilience among multi-utility companies, potentially providing investors with stable income sources.
- Overall Trend: Even the tenth-ranked Edison International (EIX) performed well with a 5.24% increase, reflecting the stability of the utilities sector during peak winter demand, which may attract more capital into the field.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these companies.
- Market Dynamics Observation: While specific stock names are not mentioned, changes in analyst ratings typically influence investor decisions, potentially leading to price volatility in the affected stocks.
- Investor Attention: Investors considering buying OKLO stock should pay attention to analysts' opinions to make more informed investment decisions, especially amid increasing market uncertainty.
- Impact of Rating Changes: Analyst rating adjustments not only affect short-term market sentiment but may also have profound implications for the long-term stock performance of the companies involved, necessitating close monitoring of subsequent developments.
See More
2026 Energy Stocks Investment Outlook
- Market Performance Continues: The S&P 500 has gained 1% year-to-date in 2026, with analysts predicting a fourth consecutive double-digit return, indicating that investors need to be selective as not all growth stocks will continue to win.
- Oklo's Nuclear Innovation: Oklo is designing small reactors and has begun construction of its first Aurora powerhouse at Idaho National Laboratory, aiming to demonstrate this technology before America's 250th anniversary in 2026; despite no revenue yet, its progress could position it as a key utility player for future data centers.
- Bloom Energy's Growth Potential: Bloom Energy manufactures solid oxide fuel cells that generate power from various fuel sources and has a long list of blue-chip customers; as it integrates its technology into AI infrastructure, significant revenue increases and stock price growth are anticipated.
- NuScale's Market Opportunities: NuScale's small modular reactor has received regulatory approval, and while it lacks a first customer, its involvement in multiple projects could lead to rapid deployment in real-world settings, despite facing uncertainties regarding costs and market dynamics.
See More
NuScale Power's Future with Small Modular Reactors
- Innovative Technology Potential: NuScale Power is developing small modular reactors (SMRs) that can be scaled from one to twelve units based on demand, aiming to provide reliable power solutions for facilities like data centers, which could significantly transform nuclear energy usage if successful.
- Market Opportunities and Challenges: Although NuScale is the only U.S. company with NRC approval for an SMR design, it has yet to achieve commercial deployment, with a current market cap of about $6 billion, which could seem undervalued if successful, yet its stock is still trading over 60% below its 52-week high.
- Project Progress Delays: Collaborations with Romania and the Tennessee Valley Authority have not yet materialized, and while these projects could be groundbreaking, the uncertainty surrounding construction costs led to the cancellation of the Carbon Free Power Project with Utah Associated Municipal Power Systems in late 2023.
- Investment Risks and Returns: Despite the potential demand and scalability of NuScale's SMR technology, investors should recognize the lack of a successful commercialization track record, as the company presents a high-risk, high-reward investment opportunity that could significantly enhance portfolio value over the next decade.
See More
Oklo Shares Decline Amid Geopolitical Risk Reassessment
- Stock Price Decline: Oklo Inc (NYSE:OKLO) shares fell 6.23% to $74.66 on Monday, primarily due to investors reassessing the geopolitical risk premium associated with Iran's nuclear program, leading to a broad pullback in uranium and nuclear energy stocks.
- Impact of Nuclear Talks: The resumption of nuclear talks between Iran and the U.S. in Istanbul may reduce expectations for uranium supply disruptions, thereby lowering the 'fear premium' on uranium prices, which puts pressure on stocks like Oklo that are tied to nuclear energy.
- Technical Indicator Analysis: Oklo's current stock price is 18.4% below its 20-day simple moving average and 30% below its 100-day simple moving average, indicating significant short-term weakness, despite a 62.45% increase over the past 12 months.
- Analyst Ratings and Targets: Despite facing short-term pressure, Oklo's stock carries a 'Buy' rating from analysts, with an average price target of $112.69, reflecting confidence in its long-term growth potential.
See More
Oklo Stock Drops Amid Nuclear Policy Announcement
- Stock Decline: Oklo's stock fell 8.3% to $84.49 by 10:10 a.m. ET Thursday, reflecting market concerns over the U.S. Department of Energy's new nuclear policy, despite the potential to attract $50 billion in private investment.
- Lack of Support: The DOE's announcement regarding the modernization of the nuclear fuel cycle did not mention Oklo, indicating potential risks for the company in securing government backing for future nuclear innovation campuses.
- Unclear Investment Opportunities: While the innovation campuses could bring significant investment to the nuclear sector, Oklo's exclusion from the plans suggests the company may need to fund future nuclear facility developments independently, increasing financial strain.
- Market Reaction: The absence of specific funding allocations and support has led investors to adopt a cautious stance on Oklo's future, potentially placing the company at a disadvantage in the competitive nuclear energy market.
See More
Top Performing U.S. Utilities Stocks in January 2026
- Leading Performance: Oklo (OKLO) tops the January 2026 performance list with a 10.86% increase, indicating strong growth potential in the electric utilities sector that may attract more investor interest.
- Close Competitors: NextEra Energy (NEE) and Pinnacle West Capital (PNW) follow with gains of 8.38% and 7.19%, respectively, suggesting robust overall performance in the electric utilities sector that could boost industry confidence.
- Diverse Performance: NiSource (NI) and Consolidated Edison (ED) achieved increases of 6.40% and 6.09%, demonstrating resilience among multi-utility companies, potentially providing investors with stable income sources.
- Overall Trend: Even the tenth-ranked Edison International (EIX) performed well with a 5.24% increase, reflecting the stability of the utilities sector during peak winter demand, which may attract more capital into the field.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several stocks, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these companies.
- Market Dynamics Observation: While specific stock names are not mentioned, changes in analyst ratings typically influence investor decisions, potentially leading to price volatility in the affected stocks.
- Investor Attention: Investors considering buying OKLO stock should pay attention to analysts' opinions to make more informed investment decisions, especially amid increasing market uncertainty.
- Impact of Rating Changes: Analyst rating adjustments not only affect short-term market sentiment but may also have profound implications for the long-term stock performance of the companies involved, necessitating close monitoring of subsequent developments.
See More
