Oklo Inc. (OKLO +5.52%) shares are now on sale. Since 2026, shares have fallen in value by nearly 40%. The company's market cap is now under $9 billion, even though the nuclear company is chasing a $10 trillion global opportunity.
Analysts expect the company to report its next quarterly earnings announcement early next month. That earnings announcement could come with several positive surprises. There are two reasons in particular to buy before the numbers drop.
NYSE: OKLO
Key Data Points
1. Project pipeline updates could strongly influence Oklo's stock price
According to Bank of America analysts, we're now entering a $10 trillion nuclear renaissance. "[N]uclear energy has, in many ways, been recently 'rediscovered' amid surging electricity demand," a report from the bank recently concluded. "Compared with other energy sources, it offers reliable baseload power, a smaller carbon footprint, and a higher energy return on investment."
Surging electricity demand has largely stemmed from one source: the rising energy needs of data centers that serve the AI industry. Over the next few years, trillions of dollars will be spent to expand AI data center infrastructure globally.
Oklo's specific approach to nuclear energy, which consists of small modular reactors (SMRs), will only command a slice of this $10 trillion opportunity. But after a sharp correction, Oklo's market cap is now under $9 billion. The upside potential of even a few new deals, or even additional traction on its existing deal flow, could have an outsize impact on the market's confidence that the company will play a valuable role in this energy revolution.
Image source: Getty Images.
2. The AI industry's need for more power isn't going away
Even if there isn't a major announcement revealed during next quarter's earnings call, Oklo is still a promising long-term buy. That's because the company's growth tailwinds -- namely, rising demand from the AI data center market -- aren't going away anytime soon.
"Capital is pouring into data center development, but ... incumbents can't meet demand for power," observes a recent report from McKinsey & Co. As long as the requisite power can be sourced, McKinsey & Co. analysts believe $7 trillion will be spent on building new data center capacity over the next four years. This breakneck speed of construction may extend through 2040, or even 2050, with compounding energy demand challenges.
I'm increasingly confident that Oklo will play a major role in the global scaling of SMR technology. It has already signed deals with major technology companies as well as data center operators. And Sam Altman, the founder of OpenAI and ChatGPT, was the Chairman of Oklo for many years -- a strong indication that AI companies believe in SMR technology long term.
Following a sharp correction, Oklo's market cap is now below $9 billion. It may be a bumpy long-term ride, but this is clearly a high-risk, high-reward opportunity for aggressive growth investors.
