Cathie Wood and her Ark Invest funds sold Oklo — the nuclear power startup backed by OpenAI head Sam Altman — and purchased uranium refiner Cameco on Tuesday ahead of President Donald Trump's announcement of a private sector investment of up to $500 billion to fund infrastructure for artificial intelligence.
Wood's ARK Invest ETFs unloaded 50,333 shares of Oklo on Tuesday while adding 17,504 shares of Cameco. Altman's Oklo soared 20% to 31.25 during market action on Tuesday and has advanced nearly 50% on the week heading into Friday's market open.
Three days after Wood sold Oklo, Wedbush Securities analyst Dan Ives Friday morning increased his Oklo price target to 45, up from 26, maintaining an outperform rating on the stock. This price target represents further 16% upside compared to current Oklo trading levels.
Oklo stock gained 7.8% to 41.82 Friday after jumping 13.5% on Thursday. Meanwhile, Cameco dropped 1.5% to 56 Friday. Wood purchased another 1,500 shares of CCJ on Friday.
Cameco advanced around 1% to 56.86 on Thursday and ended the week with an 8.5% gain.
Nuclear stocks broadly advanced this week following Trump's announcement Tuesday afternoon that Altman's OpenAI, SoftBank and Oracle are planning a joint venture called Stargate, to build data centers and other AI infrastructure in the U.S. Data centers, needed to "train" AI learning models, are expected to increase electricity demand through the decade and Big Tech players have looked to nuclear power as an answer to this demand surge.
Nuclear Energy Stocks Enter 2025 On A High. AI Data Centers Need Them, A Lot.
"Our confidence in the AI Revolution datacenter buildout is increasing under the Trump Administration," Ives wrote Friday. "We also believe Project Stargate is the start of a much bigger AI initiative within the Beltway with nuclear energy ultimately playing a key role in powering datacenters at the foundation of the 4th Industrial Revolution and Oklo is set to be a major player along with Altman's key AI role looking ahead in our view."
Cathie Wood: Nuclear Stocks Take Off
S&P 500 nuclear giants Constellation Energy and Vistra jumped 9.8% and 11.9%, respectively on the week. CEG and VST are both extended above traditional buy points, according to MarketSurge chart analysis.
Meanwhile, small modular reactor-focused companies, including Oklo, have taken off in recent months.
There are currently no operational advanced nuclear projects. However, several companies are moving ahead with small modular reactor, or SMR, technology. Analysts broadly view Oklo as the SMR-focused company that will come online first with others targeting the 2030s.
Oklo stock is extended above a traditional 28.12 buy point, the high from Oct. 30, from a nine-week cup base. However, the stock is volatile and has swung above and below the entry in broad moves.
Fellow SMR-focused stock Nano Nuclear Energy surged 17.3% to 42.74 on Thursday and is now extended above a traditional 33.82 entry, using the stock's high from Nov. 22.
NNE stock surged 80% on the week.
Meanwhile, NuScale Power jumped 13.7% to 29.08 on Thursday, part of a 27.3% gain for the week. NuScale Power stock has draped itself across its 10-week moving average over the course a strong 2024 run.
The stock is currently in a deep cup base with a 32.30 buy point, according to MarketSurge. However, much of that base is below the 50-day moving average line, another sign of the volatility in the SMR-related stocks.
When it comes to Cathie Wood's buy from Tuesday and Friday, Canada-based uranium refiner Cameco is one of the world's largest providers of uranium with utilities around the globe relying on the company to provide nuclear fuel solutions.
Westinghouse, privately owned under a partnership between Brookfield Energy and Cameco, may be farthest along when it comes to SMR technology.
CCJ shares jumped 8.5% this week after finding support at their 200-day line earlier this month before bouncing strongly off that key average on Jan. 17. The stock remains about 9% below its December high of 62.55.
Cameco stock has a 65 Composite Rating out of a best-possible 99. The stock also has a 79 Relative Strength Rating and a 27 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor's Corner
AI Is Fueling A 'Nuclear Renaissance.' Bill Gates And Jeff Bezos Are In The Mix.
The Lithium Price Cycle Has Bottomed. What To Expect Next For These Stocks.
