Oklo (OKLO -6.92%), the advanced nuclear company, trades about 46% lower on the year.
The ongoing sell-off of the nuclear stock, which has wiped out roughly 80% of its value since last October, wasn't completely unwarranted, as its valuation had grown lofty for a nuclear start-up with no commercial revenue.
NYSE: OKLO
Key Data Points
However, Oklo's situation is improving. It now has a project pipeline that exceeds 14 gigawatts. Federal policy is becoming increasingly supportive of advanced nuclear power for AI data centers. The company also received authorization from the U.S. Department of Energy to start loading nuclear fuel into its Groves Reactor for testing.
These are solid reasons to feel bullish on Oklo, but my confidence ultimately comes down to management.
Image source: Oklo.
Indeed, regarding pure technical credibility, Oklo's leadership is impressively gifted. CEO Jacob DeWitte, who co-founded the company in 2013, holds an S.M. and Ph.D in nuclear engineering from MIT. His graduate research covered sodium fast reactors, the same technology Oklo is developing, as well as the economics of improving the U.S.'s existing nuclear fleet.
Co-founder Caroline DeWitte, who is Jacob's wife, also studied nuclear engineering at MIT and previously served on the U.S. Department of Energy Nuclear Energy Advisor Committee.
The DeWittes' expertise doesn't, of course, guarantee commercial success, but it does give me confidence that Oklo is being led by people who understand the technology from the inside out.
Combine that leadership with Oklo's other strengths -- its partnerships, strong federal tailwinds, and its about $2.6 billion in liquid assets at the end of March -- and the nuclear stock seems like a compelling buy at today's price.
