Heading into the new year, nuclear power stocks have been capturing investor attention. This is largely due to the vast energy consumption of artificial intelligence (AI). Data centers, chatbots, AI models, and even AI chips all use a great deal of power, forcing companies like Nvidia (NVDA), Alphabet (GOOGL), and Amazon (AMZN) to invest in various power utilities to meet their needs. This has lifted the stocks of various traditional utility companies and has also led to a rise of investment in nuclear power firms.
Oklo, which came public in May 2024, is one such company. Its shares are up 153% over the past 52 weeks, and and up nearly 190% in just the past three months.
On Jan. 3, shares got a more-than-20% boost thanks to the federal government. President Joe Biden updated rules on tax credit eligibility in a way that has benefitted nuclear power firms.
Between the latest news and AI-driven power demands, is OKLO stock a buy for 2025? Let’s dive in to find out.
About Oklo Stock
Oklo is an advanced nuclear technology company based in California, focusing on creating fast nuclear reactors to supply clean and cost-efficient power. Its focus is on its Aurora nuclear reactor powerhouse product line. This product line leverages small power plants that generate electric power using a fast neutron reactor. The powerhouses would then be used for data centers, military bases, industrial sites, and even remote communities that exist off traditional power grids.
Notably, OpenAI CEO Sam Altman is the company’s chairman and has a 2.6% stake in OKLO stock based on his latest filings.
Oklo Records a 200% Increase in Customer Pipeline
Oklo posted its third-quarter results in November, but as it is still a development-stage company, it has not produced any revenue. Instead, its quarterly update focused on research and development milestones as well as deals that it has reached with potential customers.
One key takeaway is that it signed on two new data center customers in Q3. These customers helped drive a 200% increase in its customer pipeline to 2,100 megawatts of projected power generation. Other important accomplishments in Q3 included Oklo receiving regulatory approval to begin work on its first powerhouse in Idaho and its $25 million acquisition of Atomic Alchemy. Oklo says that this purchase will give it access to radioisotope extraction technology, which will create another revenue channel. It says radioisotopes are popular for their use in cancer treatment and clean energy, among other things.
In its shareholder letter, Oklo also made clear that it is primed to benefit from artificial intelligence, and says it is in lead position.
Biden Administration Gives OKLO Stock a Boost
In addition to the AI tailwind, the White House announced new tax credit eligibility rules on Jan. 3.
As a result, nuclear power plants will be able to claim some tax credits if they are producing clean hydrogen. One reason for this is that the government believes offering these tax credits will help nuclear power plants avert shutdowns and potentially help others to restart operations. The U.S. has lost 12 nuclear power plants in the last 12 years due to high operating costs, public concerns about nuclear energy, and age-related wear and tear.
Constellation Energy (CEG), the largest nuclear power company in the U.S., said that this move was a win for itself and others in the industry.
What Do Analysts Think About Oklo?
Although Oklo operates in a high-potential industry and has a very powerful backer, shares have already surpassed the mean price target of $21 and the Street-high price target of $27. However, analysts do have a “Moderate Buy” rating on shares, indicating that positive developments like the Jan. 3 news could lead to higher price targets.
