Early investors in Oklo (OKLO 5.05%) who held on to their shares through the flat and rocky months of 2024 have seen a triple-digit gain since last year.
Indeed, after losing more than 50% on its first day of trading (May 10, 2024), Oklo stock has rebounded more than tenfold, beating heavyweight AI favorites, like Nvidia, Palantir, Alphabet, and Microsoft, plus the S&P 500 (^GSPC 1.52%) over the same period.
Put differently: If you had invested $10,000 in Oklo near the end of its May 10 debut, you would have about $100,000 right now. At one point in October, that same holdings would have been worth well over $200,000.
With a 280% gain on the year, Oklo may seem like old news. And yet if you believe in the future of artificial intelligence (AI), this stock's incredible run may only be the beginning.
Image source: Getty Images.
Can Oklo turn $1,000 into $100,000?
Oklo isn't your average nuclear company.
The Sam Altman-backed start-up is designing a microreactor ("Aurora powerhouse") that can supply on-site power to remote areas.
Unlike traditional nuclear power plants, which are expensive and can take a decade to finish building, Oklo's Auroras are factory-built and can be deployed faster than large reactors. That makes them ideal for data center operators, who often build in rural areas where grid power would be severely strained by their electricity needs.
NYSE: OKLO
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But here's something to consider: If Oklo turns $1,000 into $100,000, it would join the trillion-dollar club. That's a pretty tall order for any start-up, let alone one that will operate in the utilities sector.
While a one-hundred-fold gain isn't impossible, it would likely take years, if not decades, to happen. Meanwhile, the utilities sector is expected to grow only about 5% annually. Even if Oklo can turn on its first plants, it would need to scale beyond that utility sector growth.
At this point, I'd size an Oklo position small; if its reactors work, it could matter over the long run.
