Oklo's Nuclear Reactors Surge in Popularity Amid AI-Driven Energy Demand

Oklo Stock Climbs as BofA Kicks Off Coverage With Bullish Rating on AI Data Center Demand

Oklo shares added over 4% Tuesday and have more than tripled in value this year. Oklo (OKLO) shares surged Tuesday, as Bank of America analysts initiated coverage with a "buy" rating, citing the nuclear energy startup's edge "powering the AI era." The stock rose over 4% to close near $75, bringing its year-to-date gains to 250%. Executive orders signed by President Donald Trump this year to speed up approvals of new reactors and demand for energy to power AI have buoyed shares of nuclear companies like Oklo and NuScale Power (SMR) this year. "Nuclear is regaining momentum, backed by both the DOE (Department of Energy) and data center operators, with Oklo well positioned to meet the rising energy needs of AI," the analysts wrote. They issued a Street-high target of $92 for the shares, well above the mean of analysts surveyed by Visible Alpha at $80. Bank of America suggested Oklo could have an edge over rivals as it is vertically integrated and has long-term deals with clients, among them data centers, industrial companies, and government departments. OpenAI CEO Sam Altman was an early backer of the company but stepped down from his role as its chair in April. The analysts also said power demand from data centers, which represent a key part of Oklo's client base, could be set to nearly double by 2035. The Santa Clara, Calif.-based company announced a partnership with Vertiv (VRT), which makes data-center equipment, in July to provide power and cooling for AI data centers.

Can Oklo's Nuclear Reactors Save Data Centers? - Oklo (NYSE:OKLO)

As the demand for computing power surges, driven by the rapid expansion of artificial intelligence and cloud-based services, energy consumption from data centers is skyrocketing. This escalating requirement for reliable and sustainable energy sources is prompting innovative solutions in the energy sector, highlighting the critical role of advanced technologies in meeting future power needs. Oklo Inc's OKLO next-generation small nuclear reactors (SMRs) offer a "scalable solution" to the data center power crunch, according to BofA Securities. OLKO is trading in a tight range. See the complete data here. The Oklo Analyst: Analyst Dimple Gosai initiated coverage with a Buy rating and price target of $92. The Oklo Thesis: The company is "well positioned to meet the rising energy needs of AI," Gosai said in the initiation note. Check out other analyst stock ratings. A report by Gartner estimates power demand from AI to be 2.6X of today's consumption by 2027, "with shortages threatening up to 40% of data center sites," she added. Oklo has among the largest publicly disclosed customer pipelines, with more than 14 gigawatts (GW) of MOUs, which represents around 30% of the global pipeline, the analyst stated. This includes a 12 GW multi-site agreement with Switch, she noted. Oklo's partnership with Liberty Energy could enable earlier monetization and smooth the path to SMR deployment, Gosai said. "In our view, formalized hyperscaler agreements represent the most material near-term catalysts for the stock," she further wrote. OKLO Price Action: Oklo shares were up 3.67% at $73.80 at the time of publication on Tuesday, according to Benzinga Pro data. Read More: Earnings Reports From These Retail Investors' Top Stocks: Rigetti, Plug Power, BigBearAI And More Photo: Shutterstock OKLOOklo Inc$73.873.76%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum99.41Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why Oklo Stock Is Spiking Higher Today | The Motley Fool

There's no shortage of investors bullish on Oklo (OKLO 2.89%) stock right now. Shares of the nuclear energy stock have soared in 2025, and they're continuing to rise higher today thanks to an analyst's bullish opinion on the small modular reactor (SMR) developer. As of 10:49 a.m. ET, shares of Oklo are up 6%. Lest you thought the market was souring on the prospect of Oklo stock rising even higher than its massive gain in 2025, Bank of America analyst Dimple Gosai believes the nuclear energy stock's climb isn't over. The analyst initiated coverage on Oklo stock today with a buy rating and a $92 price target. With Oklo shares closing at $71.19 yesterday, Gosai's price target implies upside of 29.2%. According to The Fly, Gosai predicated her opinion on the belief that Oklo is "well positioned to meet the rising energy needs of [artificial intelligence] AI." Plus, Gosai believes Oklo's pipeline that includes memoranda of understanding totaling about 14 gigawatts distinguishes itself from SMR peers. While BofA is bullish about Oklo's prospects, it's important to acknowledge that not every analyst shares the same view. Last week, UBS initiated coverage on Oklo with a neutral rating and a $65 price target. More importantly, investors must recognize that analysts often base their price targets on shorter time frames than the multiyear holding periods that The Motley Fool favors. Since Oklo still doesn't have a design licensed by the Nuclear Regulatory Commission, the stock represents a higher degree of risk. Therefore, only those who are comfortable with a more speculative investment should consider a position.

1 Nuclear Energy Stock Up Over 900% in the Past 365 Days | The Motley Fool

Investor interest has been supercharged for this nuclear energy stock and has shown little indication of slowing down. Several years ago, nuclear energy investments were a rarely discussed niche of the renewable energy market that held little promise for serious growth. Boy, have things changed. Today, escalating generative artificial intelligence (AI) usage and other sorts of AI computing are starting to strain the electrical grid. Fretful of how they will ensure adequate power supply, AI companies are investing heavily in data center infrastructure. Couple this with the fact that nuclear companies are making steady progress toward making their small modular reactors commercially viable, and it's no wonder why Oklo (OKLO 1.28%) stock has soared 940% over the past year. Over the past year, investors have consistently celebrated Oklo's success in growing its backlog. In November, it announced it had received letters of intent from two customers to deliver up to 750 megawatts of power for data centers across the U.S. The following month, Oklo announced an agreement with Switch, an AI data center developer, to deploy 12 gigawatts of Oklo's Aurora powerhouse projects through 2044. Contributing further to Oklo stock's rise -- and the rise of other nuclear energy stocks -- President Donald Trump signed executive orders last May that are intended to spur development of the nuclear energy industry. While Oklo stock has skyrocketed higher over the past year, shares can certainly maintain the same upward trajectory. Unlike NuScale Power, Oklo doesn't have a design approved by the U.S. Nuclear Regulatory Commission. Should the company make substantial progress toward receiving the requisite certifications, it's likely that Oklo stock will race higher. Similarly, if Oklo inks more agreements with data center companies, investors will likely bid the stock higher. Despite the potential for shares to continue rising, investors should recognize the fact that the company's not generating revenue and there's no certainty that, if it does, it will subsequently generate profits. Those looking to mitigate those considerable risks may be more interested in a nuclear energy exchange-traded fund (ETF) to gain industry exposure.