Shares of Oklo (OKLO 5.85%) flew higher this week, finishing up 63.5%. The jump comes as the S&P 500 (^GSPC 0.16%) and the Nasdaq-100 gained 1.2% and 2.2%.
The advanced nuclear reactor developer's stock surged after the U.K. and U.S. announced they will work together to advance nuclear energy technology and slash permitting wait times.
NYSE: OKLO
Key Data Points
U.K. and U.S. partner to boost nuclear energy
A memorandum of understanding between the two countries was made public on Thursday, outlining collaboration on nuclear energy development. The agreement emerged from President Trump's U.K. visit this week, where nuclear energy and artificial intelligence (AI) were the dominant topics.
The U.K. plans to slash its reactor licensing timeline from three to four years down to just two years, while the U.S. has set an 18-month target for review procedures. That's a massive acceleration that could fundamentally change how quickly companies like Oklo can deploy their small modular reactors.
The agreement also targets Russia's dominance in nuclear fuel supply. Both nations are committed to eliminating Russian fuel imports by 2028. Energy Secretary Chris Wright indicated at a Vienna conference this week that he'd pursue similar partnerships with other nations.
Image source: Getty Images.
Oklo rides the nuclear wave
The opportunity for Oklo is massive. Nuclear energy is having a renaissance of sorts, and with its compact fast reactor design, Oklo could be particularly well-positioned to benefit from streamlined licensing.
Still, the company's valuation makes me pause. Oklo has yet to generate meaningful revenue and trades on promise rather than performance. The technology still needs to be perfected, and there's no guarantee that successive administrations will be as pro-nuclear as the current one. But if you have a higher risk tolerance, Oklo is a solid pick.
