Shares of Oklo Inc. (OKLO), backed by OpenAI CEO Sam Altman, have had a stellar run in the stock market, gaining nearly 150% year-to-date. This surge is primarily driven by optimism surrounding nuclear energy companies, fueled by expectations of increasing energy demand to support AI (artificial intelligence) infrastructure. Looking ahead, analysts remain strongly bullish on OKLO stock, though the potential for further share price growth might be limited.
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Oklo expertise lies in microreactors, a groundbreaking concept that could transform the way reactors are designed and operated. These offer compact, efficient, and sustainable energy solutions that can operate for years without the need for refueling.
Why are Analysts Bullish on Oklo’s Future?
Bulls are optimistic about Oklo’s small reactors, seeing strong potential in the growing market for small modular reactors (SMRs). These compact, flexible nuclear reactors are gaining traction, with major companies like Alphabet’s (GOOGL) Google, and Amazon (AMZN) investing heavily to fuel their growing data centers. Additionally, the U.S. Department of Energy (DOE) recently approved up to $900 million to support SMR development, which could further enhance Oklo’s growth prospects.
Notably, Oklo’s Aurora microreactor produces 15 MWe (megawatts) of electricity, which could be scaled up to 50 MWe and run for over 10 years without refueling.
Another key highlight for Oklo is its robust network of partnerships. Most recently, Oklo has partnered with RPower to provide power solutions for data centers. The deal uses RPower’s natural gas generators initially, with a shift to Oklo’s clean energy from Aurora powerhouses to reduce diesel use and support sustainable operations. Similarly, Oklo plans to deploy 12 gigawatts of power over the next 20 years through a framework agreement with U.S.-based data center operator Switch.
Insights from TipRanks’ Bulls Say, Bears Say
TipRanks’ “Bulls Say, Bears Say” tool provides insights into analysts’ perspectives on OKLO stock.
In addition to its technology and partnerships, analysts are optimistic about the ADVANCE Act, which boosts the nuclear industry by reducing licensing fees, shortening NRC (U.S. Nuclear Regulatory Commission) approval timelines, and expediting reactor approvals.
However, bears remain cautious about potential regulatory challenges and delays with the NRC.
Is Oklo a Good Stock to Buy Now?
Overall, Wall Street has a Strong Buy consensus rating on OKLO stock, based on three Buys and one Hold recommendation. The average share price target for Oklo is $44.50, which implies a downside potential of 15.4% from current levels.
