Soaring 261% through the first seven months of 2025, it's clear that Oklo (OKLO -4.59%) has attracted a considerable amount of investor interest. With nuclear energy growing in popularity, the small modular reactor (SMR) developer's stock has remained in high demand from investors seeking nuclear energy exposure.
But the narrative regarding Oklo is more complex than investors may realize. Completing its acquisition of Atomic Alchemy in March, Oklo has evolved into a business that is expanding beyond the development of SMR technology. That's why I'll be keeping a close eye on it over the next few months.
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Revenue may start rolling in sooner rather than later
Recognized for its progress in developing SMR technology, Oklo took a step toward diversifying its operations earlier this year when it completed the acquisition of Atomic Alchemy, a company involved in radioisotope production. Oklo forecasts investments in Atomic Alchemy's demonstration project totaling less than $500,000 in 2025, and it expects that the project will start producing revenue in early to mid-2026.
In addition, Oklo plans on submitting a U.S. Nuclear Regulatory Commission (NRC) license application for the company's first commercial facility featuring its proprietary Versatile Isotope Production Reactor in 2025, with the project expected to commence operations in 2028.
Oklo cites data from Research Nester that projects the radioisotopes market -- including those used in defense, medical, semiconductor manufacturing, and other industries -- at $55.7 billion by 2026.
Why I'm paying close attention to the Atomic Alchemy acquisition
Having recently completed a key component of the NRC combined license application, Oklo is targeting late 2027 for the start of operations for its first SMR Aurora powerhouse. Should the company recognize success with the Atomic Alchemy demonstration plant, it would suggest that the company may have a material revenue stream that can mitigate some of the company's risk.
There's no certainty that the NRC will approve the Aurora powerhouse application, and, if it does, there are still potential risks should the company succeed in achieving commercial operations of the Aurora powerhouses. So I'm watching how the Atomic Alchemy project works out.
