Oklo Stock: Nuclear Energy Company Surges 15% on Government Support and Uranium Awards

TLDR

• Oklo stock jumped 15% on Monday, bringing its year-to-date gain to 21%
• The rally was driven by renewed government focus on nuclear energy and $2.7 billion in uranium-enrichment awards from the U.S. Energy Department
• House Energy subcommittee announced it will review the current status of the nuclear sector in the US
• Oklo secured multiple contracts with the Department of Energy for fuel supply chain programs
• Wall Street analysts maintain a Moderate Buy rating with a price target of $130.10, representing 45% upside potential

Oklo stock climbed nearly 15% on Monday as nuclear energy companies rallied across the board. The microreactor developer closed at $89.34 per share, marking its third consecutive day of gains.

Oklo Inc., OKLO

The company’s year-to-date performance now stands at 21%. Fellow nuclear stocks NuScale Power Corp. and Nano Nuclear also posted double-digit gains during the session.

The rally came after the U.S. Energy Department announced $2.7 billion in uranium-enrichment awards. These awards include funding for high-assay low-enriched uranium, which is essential for next-generation reactors.

HALEU fuel supply has been a key bottleneck for Oklo’s operations. The company’s Aurora Powerhouse reactors rely on this specialized fuel to function.

Geopolitical events added to the momentum in energy stocks. U.S. forces captured Venezuela’s president over the weekend, drawing attention to energy security concerns and boosting related sectors.

Congressional Review and Government Contracts

The House of Representatives’ Energy subcommittee announced plans to review the nuclear sector’s current status. The hearing will examine licensing, deployment, and how recent policies can support industry growth.

This initiative follows President Trump’s executive order from last year. The order aims to expand nuclear capacity to meet rising energy demands from artificial intelligence and domestic manufacturing.

Oklo has secured multiple contracts with the Department of Energy. These deals support the Fuel Line Pilot and Reactor Pilot programs, which focus on establishing a domestic nuclear fuel supply chain.

The company develops smaller modular reactors designed for commercial use. However, regulatory approval for its first 75-megawatt Aurora Powerhouse remains pending.

Commercial operations are not expected to begin until late 2027 or early 2028. The company must first clear regulatory hurdles before deploying its technology.

Analyst Views and Future Projections

H.C. Wainwright analyst Sameer Joshi reiterated his Buy rating on Oklo in December. He highlighted the company’s three-pronged business strategy.

The plan includes deploying Aurora Powerhouses for electricity generation. Oklo also intends to fabricate and sell HALEU fuel and commercialize radioisotopes.

Revenue projections show exponential growth potential. Analysts expect the company to surpass $21 billion in revenue by 2038 if facilities reach full operational capacity.

Strong gross margins are anticipated once production scales up. The company’s stock has risen nearly 200% over the past year as investors bet on nuclear power for AI data centers.

Wall Street maintains a Moderate Buy consensus rating on the stock. Eight analysts recommend buying while five suggest holding.

The average price target sits at $130.10 per share. This represents a potential upside of 45.62% from current levels.

Analysts caution that the stock trades at high valuations. The capital-intensive nature of the business presents risks for investors.

The uranium-enrichment awards from the Energy Department could help address fuel supply constraints. Federal support may ease bottlenecks and boost production potential for companies like Oklo.

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