Oklo (OKLO +4.96%) went public in 2024 by merging with a special purpose acquisition company co-founded by Sam Altman, the visionary behind ChatGPT. It's not hard to understand why Altman wanted to bring more attention to small modular nuclear reactor companies like Oklo. The artificial intelligence space is growing rapidly, but it will need more and more power to continue this growth. Small modular reactors (SMRs) like the ones Oklo specializes in could be a viable solution.
Hype around AI and SMRs caused Oklo stock to balloon in 2024 and 2025. But after setting new all-time highs last month, shares have pulled back from around $171 to just above $120 as I write this on Nov. 5. Is this your chance to buy into this exciting growth stock at a discount?
NYSE: OKLO
Key Data Points
Oklo's nuclear reactors could be the future of AI
Oklo's stock has been surging due to rising hype, but so have the stock prices of other SMR names like NuScale Power and Cameco. The world is hungry for more clean energy. And despite decades of failures, it seems that the age of SMR technology is finally upon us. NuScale already has certified reactors under production. Oklo has nonbinding order agreements from data center operators like Equinix.
Image source: Getty Images.
Most SMR businesses still have relatively low market caps despite the hype and potential. Oklo, for example, has a market cap under $20 billion. If SMR technologies scale en masse, we should see these valuations explode. But here's the thing: That could take years to come to fruition. Even with an existing order, Oklo may not have a completed facility online until 2030. And technological approaches to SMRs vary. We can't be sure which approach will ultimately win.
In short, the pullback makes Oklo stock intriguing. But if you pick up shares, keep a long-term view despite the potential for a short-term bounce-back.
