Recently, Nvidia CEO Jensen Huang stated that nuclear power, particularly small modular reactors (SMRs), will be crucial in powering artificial intelligence (AI) infrastructure. The world's largest company by market capitalization giving a nod to nuclear power is a boon for Oklo (OKLO 3.19%) and its investors.
Oklo is focused on serving the energy needs of the rapidly growing AI industry. The company specializes in next-generation nuclear technology, which is safer and cleaner. Huang's comments validate the thesis that nuclear will need to be an essential part of the expansion of data centers and AI initiatives. Thus, the explosive growth of AI data centers around the world is the one big reason Oklo will skyrocket again in 2026.
AI's energy demands are expected to triple or quadruple by 2030. Data centers already use more energy than some countries. Oklo could be the default provider of nuclear power for both large corporations and governments.
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Oklo is closer to becoming operational
As of Dec. 11, Oklo stock is up more than 385% year to date. This triple-digit gain isn't based on the company's financials, however. Oklo is still considered pre-revenue and likely won't have an operational plant ready until the end of 2027 or early 2028. The meteoric rise in the stock is based on the exponentially growing energy needs tied to AI, and the realization that several forms of energy will need to fill that demand. Huang's approval of next-generation nuclear, which still carries a stigma, is a tremendous boost for Oklo.
The nuclear sector itself is seeing a resurgence, but Oklo can't rely on that alone. Oklo needs to prove its technology works at scale. There is always the risk that the company's core product, the Aurora Powerhouse, won't live up to efficiency expectations once it becomes operational.
Oklo is a cash-burning machine right now as it works to become fully operational within the next couple of years. Total operating expenses exceeded $82 million through the first three quarters of 2025. Dilution of the stock is also a fear for investors. However, Oklo does have a substantial cash and marketable securities position of nearly $1.2 billion as of the end of its third quarter.
The company is still highly speculative, and another bull run in 2026 will again be based on AI sentiment and energy demand. As revenue is still in the intermediate distance, any delays in Oklo's timeline to reach commercial production could hurt its chances of long-term success. If Oklo fails to stand up its first operational microreactor on time, or if the costs increase more than anticipated, that could really crush investor confidence.
Regulatory worries should lessen as Oklo has recently gained support from the Department of Energy via a partnership. Globally, there's an opportunity to work with other governments that are searching for more clean energy solutions. If policy in the U.S. and abroad shifts in a favorable direction for clean nuclear, this could again help prop up the stock and eventually result in significant revenue and reduced expenses through tax breaks and federal incentives.
NYSE: OKLO
Key Data Points
Oklo is not the only energy company looking to fill the never-ending energy needs of AI infrastructure. The company faces competition from traditional utility providers and direct competitors such as NuScale Power, which is also creating SMRs. Other alternative energy sources could cut into Oklo's potential market share as well.
Oklo is still an early-stage company
Oklo is a long-term investment for those who can afford increased volatility and risk in their portfolio. If nuclear really is a necessity for the expansion of AI, the excitement for Oklo will continue to grow throughout 2026 as it approaches a full launch. There aren't many publicly traded companies so clearly positioned to serve the needs of the AI industry as well as Oklo. This is a first-mover advantage.
If the stock skyrockets again in 2026, it'll still be driven by excitement and hype, rather than actual revenue. However, revenue isn't too far off in the distant future. Oklo could be operating and supplying AI companies with power in a few years' time. For investors who can wait, perhaps the tremendous gains this year are just the beginning.
