Beware of OKLO Stock as Executive Orders Ignite Nuclear Sector

Nuclear reactor developer Oklo (OKLO) has experienced a share price increase of over 35% in recent days, following an executive order issued by President Trump. The order aims to strengthen the U.S. nuclear energy industry by prioritizing the development of new reactors and increasing domestic uranium production to enhance energy security, particularly in response to the projected rise in electricity demand from AI-driven data centers. The emphasis on more cost-effective and scalable small modular reactors (SMRs) aligns closely with Oklo’s Aurora Powerhouse initiative.

In addition, the company reported a strong first quarter for 2025, surpassing analyst expectations with a smaller-than-expected loss. Although still pre-revenue, Oklo is demonstrating sound financial management and making meaningful operational progress toward its planned commercial launch in 2026.

With global demand for clean and dependable energy continuing to rise, Oklo is strategically positioned to contribute to this evolving sector through its innovative technology and growing network of partnerships. That said, the recent surge in share price appears to have already priced in much of this optimism. I currently maintain a neutral stance on the stock in the near term and prefer to monitor developments as the company approaches revenue generation.

Narrowing Losses, Strong Cash Position

In the first quarter, Oklo reported no revenue, as expected at this stage of its development. However, the company posted a net loss of $0.07 per share, which came in ahead of analyst expectations ranging from $0.08 to $0.10 per share and marked a significant improvement from the $4.79 per share loss reported in the same quarter last year.

The company continues to demonstrate disciplined cash management, with $12.2 million used in operations during the quarter. Management reaffirmed its full-year cash burn guidance of $65 million to $80 million. Oklo remains in a strong financial position, ending the quarter with $261 million in cash and no debt, providing a solid runway as it progresses toward its anticipated first revenues in early to mid-2026.

OKLO Achieves Key Milestones

Oklo has recently made progress on several fronts. Its flagship Aurora powerhouse project at the Idaho National Laboratory continued to advance through the regulatory process, recently securing key environmental and site-use permits. Licensing activities with the Nuclear Regulatory Commission also progressed, with fuel facility safety reviews moving forward.

The company’s acquisition of Atomic Alchemy potentially diversifies Oklo’s future revenue streams by allowing it to produce and sell high-value radioisotopes alongside its core energy business. The acquisition also establishes a more reliable domestic supply chain for critical materials, reducing dependence on foreign sources and addressing shortages in healthcare, research, and industrial sectors.

Strategic Partnerships Provide a Pipeline for Growth

Oklo was recently selected as one of just eight qualified vendors for the U.S. Department of Defense’s Advanced Nuclear Power program. This positions it for potential defense contracts, an important market segment for advanced nuclear technology.

The company also highlighted its landmark non-binding Master Power Agreement with Switch, a major data center operator. This agreement, which could deploy up to 12 gigawatts of advanced nuclear power through 2044, represents one of the more significant corporate clean power agreements in the industry and firmly positions Oklo as a key power provider for AI and cloud infrastructure.

Further, the company recently established a strategic partnership with RPower to develop a phased power model for data centers. This collaboration addresses the rapidly growing demand for efficient and flexible energy solutions to power computationally intensive AI applications.

Finally, in April, Oklo announced that Sam Altman, CEO of OpenAI and an Oklo investor, would step down as board chair. With Altman’s departure from the Oklo board, removing conflicts of interest, a power agreement between Oklo and OpenAI seems increasingly likely. Such a partnership would provide strong validation for Oklo’s technology and could accelerate its growth trajectory.

Commercialization on the Horizon

Looking ahead, Oklo remains committed to advancing its Aurora Powerhouse through the regulatory approval process, with construction slated to begin once all necessary permits are secured. The company continues to target initial revenue generation in the early to mid-2026 timeframe.

A major strategic priority is expanding Oklo’s customer pipeline, which now exceeds 14 gigawatts in potential demand. The company is actively pursuing long-term power purchase agreements with data centers, industrial operators, and defense installations—sectors characterized by increasing needs for clean, reliable energy.

Oklo’s build-own-operate business model is designed to deliver recurring revenue with attractive margins by deploying scalable, modular reactor technology. This differentiated approach stands in contrast to traditional nuclear projects and may offer enhanced financial predictability and return on investment once commercial operations commence.

Is Oklo a Good Stock to Buy?

OKLO stock carries a Moderate Buy consensus rating based on five Buy, three Hold, and zero Sell ratings over the past three months. OKLO’s average stock price target of $54.40 implies less than 1% upside potential over the next twelve months.

See more OLKO analyst ratings

Analysts following the company have had mixed reactions to recent developments. Wedbush analyst Daniel Ives increased Oklo’s price target to $55, emphasizing the potential boost from executive orders by Donald Trump. This support could accelerate Oklo’s timeline for regulatory approvals and commercial plant deployment, with expectations of increased federal funding and streamlined processes.

Conversely, BTIG analyst Gregory Lewis and Citi analyst Vikram Bagri maintain a Hold rating on Oklo, highlighting ongoing regulatory challenges and reliance on limited HALEU fuel sources. While recent executive orders have provided positive momentum, these analysts note that Oklo’s long-term potential is being hindered by current uncertainties and operational hurdles, suggesting that the market has already factored in much of the recent optimism.

Risk-Elevated Oklo Targets Clean Energy Future

There is a lot to like about an opportunity to invest in a leader in the clean energy transition, and Oklo offers exposure to the growth of advanced nuclear energy, as well as the significant increase in power demand from AI infrastructure. The company’s narrowing losses, strong partnerships, and strategic positioning suggest it may be well-positioned to capitalize on these converging opportunities as it approaches commercialization in 2026.

However, investors should recognize that the company remains pre-revenue, with first commercial operations still approximately a year away. Regulatory uncertainty and potential timeline slippage represent key risks, as does the competitive landscape in advanced nuclear technology.

Oklo is an investment suitable for investors with a high risk tolerance and a long-term investment horizon. Its recent performance indicates growing market confidence in its ability to deliver on its targets. However, volatility is likely to persist in the short term, and I prefer to remain on the sidelines until the firm is closer to commercialization.