Viewing Oklo (OKLO 3.84%) as a passive-income powerhouse before it has generated a profit is a bit optimistic, but investors who can zoom out may see the opportunity. It's not a suitable pick for investors who want high-yield dividend stocks right now.
However, Oklo can mirror the path of other superstar growth stocks, such as Meta Platforms (META 2.45%), which started as an unprofitable company, scaled its business, and now pays dividends.
Meta Platforms has only a 0.29% yield, but that yield, as a reflection of cost basis, is much higher for the people who bought shares 10 years ago. That's the type of opportunity Oklo could provide if it grows rapidly and becomes profitable in the future.
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The nuclear energy thesis
Oklo produces small modular reactors, which are smaller than traditional nuclear reactors, making them more practical at scale. Investors must believe nuclear energy will go mainstream to accumulate Oklo shares, and there are reasons to think that this is the case.
NYSE: OKLO
Key Data Points
Nuclear energy is a carbon-free energy source that provides 24/7 base-load power. This energy can be used as a power source for artificial intelligence (AI) data centers, which is central to the bullish thesis.
The U.S. Department of Energy (DOE) has been investing heavily in nuclear energy, with the department touting 2025 as "one of the biggest years in U.S. nuclear energy history." The DOE has approved Oklo's small modular reactor designs. Oklo's Aurora reactor was also selected for the DOE's pilot program.
Oklo is already working with big tech
Oklo is still a few years away from commercialization, but it's already winning big deals. Oklo and Meta Platforms recently announced that they will work together to develop a 1.2 gigawatt nuclear power plant in Ohio. While the exact dollar amount wasn't revealed in the press release, Meta Platforms has agreed to prepay for power and provide funding to advance the project.
The project has a lengthy timeline. Reconstruction starts in 2026, and the first phase should come online as early as 2030. The entire 1.2 gigawatt site will be completed by 2034.
Meta Platforms isn't the only tech company that is bullish on nuclear energy. Microsoft (MSFT 0.20%) has touted the importance of nuclear energy in previous years, and Nvidia (NVDA 1.27%) CEO Jensen Huang views it as a reliable energy source for AI infrastructure. Their bullish perspectives on nuclear energy suggest that Oklo and other competitors can secure more deals in the future.
Oklo is a high-risk stock
Although tech companies are eager to invest in nuclear energy, Oklo stock isn't a slam dunk. It's a pre-revenue company with high operating costs that will only go up as it builds more sites. Lucrative big tech deals can make the stock worth it in the long run, especially if it secures more contracts in the years ahead.
However, Oklo has a $12 billion market cap, which gives it a higher valuation than high-growth stocks that have tangible revenue and profits. Oklo can potentially multiply your money and eventually pay dividends once revenue stabilizes. But that might not happen over the next decade. If you're looking for dividend stocks, there are better options available.
