Why Nuclear Stock Oklo Has Popped 30% This Week

Shares of Oklo (OKLO) soared by double digits for the second day in a row Wednesday after the nuclear technology company announced “a significant step forward” in constructing its first nuclear power plant. 

Oklo shares soared as much as 22% in early trading on Wednesday before pulling back to trade up about 20%. The stock has risen more than 30% this week. 

Shares jumped nearly 11% yesterday after the company said it had “completed borehole drilling for site characterization work” at a site in Idaho, where it is exploring building its first fast-fission nuclear plant. Oklo, in its first-quarter earnings report released Tuesday, said it aimed to begin operations at the plant by late 2027 or early 2028.

Oklo, which generated no revenue in the quarter, reported an operating loss of $17.9 million, a 142% increase year over year. About $4 million in investment income and a $4 million income tax benefit helped narrow the company’s net loss to $9.8 million from $24 million a year ago.

Demand for nuclear energy is soaring as tech giants bring online data centers that demand massive amounts of electricity to train and run artificial intelligence. Leading AI and cloud providers such as Microsoft (MSFT), Amazon (AMZN), and Meta (META) have committed to investing in nuclear energy as they seek low-carbon, efficient power sources. 

Nuclear power providers like Oklo, Constellation Energy Group (CEG), Vistra (VST), and NuScale Power (SMR) have been among the biggest winners in Wall Street’s AI craze. Shares of Constellation and Vistra have risen 31% and 68%, respectively, in the last 12 months. Oklo and NuScale, two smaller players, have seen their stocks triple in value over that period.