Reversing the downward slide that they had suffered over the past two trading sessions, shares of nuclear energy stock Oklo (OKLO 9.15%) are charging higher today. In addition to the company reporting a new deal, investors are bidding the stock higher in response to an analyst's bullish new take.
As of 11:09 a.m. ET, shares of Oklo are up 14.1%.
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Two deals in as many days has investors has electrified investors' excitement
Collaborating with Liberty Energy, Oklo announced today that the two companies are developing an integrated power solution for data center applications that will incorporate power from Oklo's Aurora powerhouse with Liberty's natural gas generation.
Lauding the agreement with Liberty, Jacob DeWitte, Oklo's CEO, said, "This collaboration gives large-scale power users a turnkey alternative that integrates generation, backup, grid interaction, and optimization, all through a single provider."
Yesterday, Oklo announced that it's partnering with data center infrastructure specialist Vertiv to develop power and cooling solutions suitable for hyperscale and colocation data centers, using Oklo's small modular reactors (SMRs). Hyperscale data centers are designed to handle high computing loads such as those related to artificial intelligence (AI), while colocation data centers are facilities that can accommodate multiple customers.
Citigroup's more optimistic view on Oklo stock is further fueling investors' excitement today. Boosting its price target to $68 from $30, Citigroup recognizes the value of the company's reactor design and its pipeline of projects. While the price target doesn't imply upside from where the stock is trading today, it does suggest that Oklo stock is appropriately valued and won't give back the massive gains it has secured over the past year.
Oklo stock is charging higher, but potential investors must recognize the risks
Enthusiasm for nuclear energy stocks like Oklo doesn't seem likely to wane anytime soon, but investors must remember that the company is still in the early days of its development. Since it's not generating revenue and continuously burning cash, Oklo should only be a consideration for investors with high thresholds for risk.
