Shares of Oklo Inc (OKLO +7.09%) are soaring today, up 9.1% as of 2:20 ET. The jump comes as the S&P 500 and Nasdaq Composite gained 0.9% and 1.1%, respectively.
The nuclear energy company's stock is rising today as part of a broader rally in the artificial intelligence trade, spurred by a soft inflation report and massive earnings from a key supplier in the AI value chain.
NYSE: OKLO
Key Data Points
AI investors get some relief
On Thursday, the Bureau of Labor Statistics released its much-anticipated inflation report for November. The report was delayed due to difficulty accounting for the lapse in data caused by the recent government shutdown. While many economists are questioning the report's accuracy given the lack of key data, the 2.7% annual inflation rate -- well below the 3.1% expected -- was enough to boost stocks across the market, especially those in capital-intensive industries like nuclear energy.
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Beyond the inflation reading, Micron Technology's earnings release on Wednesday was strong enough to help alleviate fears of an AI bubble and lift Oklo shares. Bridging the AI power supply gap is central to Oklo's strategy and the reason its stock trades at such a premium.
There are a lot of challenges ahead for Oklo
This is a highly volatile stock, and while there is enormous opportunity, I think investors have gotten ahead of themselves. Oklo still faces significant challenges in developing its reactors and gaining regulatory approval. Even if the company clears these hurdles, building nuclear reactors is extremely expensive and time-consuming, and investors should expect potentially significant share dilution.
