Oklo Stock (OKLO) Jumps 10% on News of U.S. Air Force Contract

Oklo (OKLO), a start-up company that makes compact nuclear reactors, has been awarded a contract to supply power to a U.S. Air Force Base in Alaska.

The U.S. military has tapped Oklo to deploy its proprietary Aurora nuclear powerhouse at the Eielson Air Force Base outside Fairbanks, Alaska, according to a news release. The value of the contract was not disclosed, but the project will serve as the Air Force’s microreactor pilot program aimed at enhancing energy resilience for national security purposes.

Oklo is being contracted by the U.S. Department of Defense to design, build, own, and operate the power plant, providing both electricity and heat to the Air Force base through a long-term power purchase agreement. “This award reflects continued confidence in Oklo’s ability to deliver clean and secure energy solutions for mission-critical infrastructure,” said Oklo CEO Jacob DeWitte.

Revenue Stream

The company’s Aurora powerhouse design uses fast reactor technology to provide continuous energy that can operate independently from the electricity grid, a key feature for remote installations such as the Eielson Air Force Base in Alaska.

Oklo was started by two MIT graduates and went public in May 2024 via a special purpose acquisition company (SPAC). Since then, the company’s share price has gained 465%. However, Oklo announced a net loss of -$0.74 U.S. per share for all of 2024. The new Air Force contract is positive as Oklo currently has no revenue and management has warned that future financial losses are likely.

Is OKLO Stock a Buy?

The stock of Oklo has a consensus Moderate Buy rating among 10 Wall Street analysts. That rating is based on seven Buy and three Hold recommendations issued in the past three months. The average OKLO price target of $57.17 implies 5.36% upside from current levels.

Read more analyst ratings of OKLO stock