Oklo Stock Surges 16% on Nvidia AI Nuclear Partnership

Oklo is positioning its advanced nuclear reactors to power the next generation of energy-intensive AI data centers, striking a key partnership with Nvidia to accelerate the technology.

Nuclear developer Oklo Inc. saw its stock jump 15.65% after announcing a collaboration with Nvidia Corp. and Los Alamos National Laboratory to apply artificial intelligence to the development of advanced reactors, aiming to create a dedicated clean energy source for the power-hungry AI industry.

The partnership will “significantly accelerate” development efforts for Oklo’s Pluto reactor technology, Chief Executive Jacob DeWitte said.

Shares of Oklo closed at $72.41 Thursday, a 15.65% gain, and rose further to $78.43 in pre-market trading. The move was bolstered by a new "Buy" rating from HSBC, which initiated coverage with a $96 price target, citing the company's accelerated development schedule for its small modular reactors.

The collaboration targets the critical energy bottleneck facing the AI industry, where the massive electricity consumption of data centers requires new, reliable, and carbon-free power sources. By integrating its reactor development with Nvidia's AI expertise, Oklo aims to become a key energy provider for technology giants like Meta Platforms, which has already partnered with the company.

Pluto Reactor and Project Timelines

The initiative centers on Oklo’s sodium-cooled fast reactor technology, specifically its Pluto reactor, which is designed to run on recycled nuclear material. Selected by the Department of Energy’s Reactor Pilot Program, the system can transform nuclear waste, including surplus plutonium from Cold War stockpiles, into usable energy. The collaboration with Nvidia and Los Alamos, part of the federal Genesis Mission, will use AI-powered simulation to speed up the validation of these plutonium-bearing fuels.

Oklo is moving toward commercial deployment with its Aurora powerhouse facility, planned for a site at Idaho National Laboratory. The company, which has already received DOE approval for its safety design, projects that the first Aurora facility will begin generating electricity by the end of 2027.

This timeline supports a strategic agreement with Meta Platforms to provide 150 MW of power for a 1.2 GW data center campus by 2030, showcasing a direct application for nuclear-powered AI infrastructure.

Wall Street Divides on Valuation

Despite the bullish momentum, Wall Street remains divided on Oklo's valuation, with analyst price targets ranging from as low as $14 to a high of $168. While HSBC’s $96 target champions the company’s strategy, other firms are more cautious. UBS recently reduced its price objective to $60 from $95, maintaining a Neutral stance and highlighting potential execution challenges. Similarly, Craig-Hallum cut its target to $71, citing capital requirements.

Oklo currently holds a strong balance sheet with approximately $2.5 billion in cash and no debt. However, the company projects significant capital expenditures of $400 million annually over the next two years to fund its expansion, which will be partially supported by customer advance payments. The company anticipates recording its first revenue this year from operations at the Idaho Radiochemistry Laboratory.

This article is for informational purposes only and does not constitute investment advice.