Nuclear Startup Oklo Soars As AI Boom Sparks Need For New Power Sources
Oklo Inc. (NYSE:OKLO) shares jumped Tuesday after the nuclear startup advanced a key regulatory milestone for its Aurora Powerhouse reactor. Analysts cited accelerating approval timelines, rising U.S. electricity demand from AI and data centers, and strong bipartisan policy support for next-generation nuclear power as reasons for the rally.
The nuclear startup reported a second-quarter loss of 18 cents per share, missing estimates for a loss of 12 cents per share, according to Benzinga Pro.
Oklo reported operating losses of $28 million in the second quarter, primarily driven by payroll, stock-based compensation and general business expenses.
What is OKLO's current stock price? Find out here.
HC Wainwright & Co. analyst Sameer Joshi reiterated the Buy rating on Oklo, raising the price forecast from $55 to $90.
Joshi raised the Oklo price target to $90 from $55, citing several drivers. The analyst pointed to ongoing regulatory progress, with Phase 1 of the pre-application readiness review for the combined license application (COLA) for the Aurora Powerhouse underway.
The analyst also noted durable, bipartisan political support for nuclear power in the U.S., rising electricity demand, especially from AI and data center build-outs, and policy tailwinds from the ADVANCE Act of 2024 and executive orders issued on May 23, 2025.
Most consequential, in his view, is the acceleration of mandated approval timelines from more than two years to roughly 18 months, which meaningfully compresses the path for both COLA and subsequent COLA (S-COLA) approvals.
The analyst emphasized Oklo's technical positioning as one of the few fast-reactor developers able to use down-blended uranium and plutonium-based fuels that do not require enrichment, giving the company fuel optionality as initial units are deployed.
Joshi said the company has engaged productively with the U.S. Nuclear Regulatory Commission over several years and has now completed a significant step toward approval.
In his assessment, broad industry momentum should support overall nuclear growth and benefit early movers in advanced reactors, including Oklo.
He also flagged Oklo's radioisotopes arm, Atomic Alchemy, which has designed a proprietary Versatile Isotope Production Reactor (VIPR) aimed at delivering efficiency, scalability and operational simplicity for isotope output, potentially consolidating a fragmented supply chain under one platform.
Joshi said the company targets first powerhouse deployment in 2027–2028 and aims for 1 GW installed by 2031.
He projects revenue below $5 million in 2026–2027, rising to about $12 million in 2028 and surpassing $21 billion by 2038, a ten-year CAGR of 112%.
He expects gross margins excluding D&A to turn positive in 2029 and stabilize around 65%–75% as powerhouses scale. He also models total operating expenses, including D&A, climbing from roughly $105 million in 2025 to $2.3 billion in 2038, a thirteen-year CAGR of 27%.
Price Action: OKLO shares are trading higher by 8.98% to $78.31 at last check Tuesday.
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