Shares of Oklo (OKLO 4.22%) fell on Tuesday, finishing the day down 4.2%. The drop came as the S&P 500 and Nasdaq Composite jumped 0.9% and 0.6%, respectively.
The success of the latest artificial intelligence (AI) model from Alphabet's Google, as well as rumors of a massive chip deal between Google and Meta Platforms, is pressuring Oklo and other nuclear stocks.
NYSE: OKLO
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Google's TPUs are spooking the market
Nuclear stocks like Oklo's have surged this year as investors bet on AI's future energy demands. The narrative has been straightforward: AI data centers will strain the grid, creating an urgent need for new power sources.
Google's TPUs are complicating that story. The TPUs -- specialized semiconductors that are significantly more energy-efficient than the GPUs that have made Nvidia the most valuable company in the world -- were used to train Google's latest and highly successful AI model, Gemini 3.
Image source: Getty Images.
And now, today's leak that Meta is negotiating a multi-billion-dollar TPU deal is sending nuclear investors scrambling. If TPUs become the industry standard, AI's energy demands would be significantly less than once thought.
This wouldn't be too much of an issue for Oklo if its stock didn't already carry a hefty premium. While the technology it is working on is exciting, there are too many unknowns to justify its current valuation, and I would avoid the stock unless you have a significant risk tolerance.
