Oklo Stock Jumps 20% as Nuclear Company Signs Deal With Siemens Energy

TLDR

• Oklo signed a binding contract with Siemens Energy to source components for its Aurora powerhouse at Idaho National Laboratory
• Siemens Energy will handle engineering and design activities to speed up procurement for the power conversion system
• The company targets deployment of its first Aurora powerhouse in late 2027 or early 2028
• Oklo remains pre-revenue with no commercial operations, making the stock highly speculative
• The stock has gained over 385% this year but experienced a 30% drop in late October after Ark ETF reduced its position

Oklo stock climbed Wednesday after announcing a new partnership with Siemens Energy to advance its Aurora powerhouse project. The agreement marks another step forward for the small modular reactor developer, though commercial operations remain years away.

Oklo Inc., OKLO

The binding contract tasks Siemens Energy with initiating engineering and design work to expedite component sourcing for the Aurora powerhouse’s power conversion system. The project is located at Idaho National Laboratory in Idaho.

Alex Renner, Oklo’s chief product officer, highlighted the importance of using proven technology. He noted that Aurora’s safety design allows the company to utilize commercially available power systems like Siemens Energy’s turbine technology. This approach aims to shorten development timelines and reduce costs.

The company expects to deploy its first Aurora powerhouse between late 2027 and early 2028. This timeline gives investors a concrete window for when the technology might become operational.

Oklo stock rose 4% during Wednesday morning trading after gaining as much as 9.6% earlier in the session. The S&P 500 gained 0.4% during the same period.

The Technology Behind Aurora

The Aurora powerhouse uses a small fast reactor cooled by sodium rather than water. This design differs from traditional nuclear power plants operating across the United States.

Fast reactors can run on spent nuclear fuel from conventional plants without requiring additional uranium enrichment. This feature could address nuclear waste concerns while providing power generation capabilities.

Oklo’s long-term vision includes co-locating artificial intelligence data centers with Aurora Powerhouses. The plan involves using the same cooling system for both the reactor and data center. This setup would create a smaller footprint than traditional nuclear plants or renewable energy farms.

The compact design could allow placement closer to population centers. Power generation would occur onsite without straining electrical grids or driving up local energy prices.

The Reality of Pre-Revenue Operations

Oklo currently generates zero revenue. The company has no commercial operations and no operating cash flow. All financial metrics remain at zero as the business exists entirely in the development phase.

The prototype reactor likely won’t achieve criticality for at least another year. After that milestone, additional time will be needed to assess performance and costs. Real-world validation of the technology probably won’t come until late 2027 at the earliest.

This timeline matches the company’s deployment target. However, it means investors face years of uncertainty before knowing if Oklo’s approach will succeed commercially.

The stock price reflects this speculative nature. Shares traded below $20 in April before soaring to nearly $175 by mid-October. After a sharp selloff, the stock now trades around $100.

Volatility has defined the stock’s performance throughout 2024. The year-to-date gain exceeds 385%, but dramatic swings have occurred along the way.

In late October, Cathie Wood’s Ark Autonomous Technology & Robotics ETF sold roughly one-third of its Oklo position. The news triggered a 30% drop over the following week despite the ETF maintaining a $14.7 million stake.

These price movements happen without changes to underlying business fundamentals. Instead, they respond to news releases, competitor developments, and general industry sentiment.

The company’s market capitalization now stands at $16 billion. Trading volume Wednesday came in at 71,000 shares compared to an average volume of 19 million shares.

The 52-week trading range spans from $17.14 to $193.84. The stock closed Wednesday at $102.86, up $6.23 from the previous session.

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