Oklo Inc (NYSE: OKLO) has experienced upward momentum in its stock value, coinciding with gains in other uranium and nuclear-linked equities, following a strong endorsement of nuclear power from former President Donald Trump. Speaking at the Davos economic forum, Trump characterized the United States as deeply invested in the future of nuclear energy, highlighting it as a clean and dependable choice compared to wind and solar power, which he described as expensive and inconsistent.
Trump's comments at this influential global venue underscore a policy trend favoring the acceleration of nuclear technology deployment. These statements align with recent federal executive actions aimed at streamlining the regulatory framework for nuclear reactors, including expediting licensing processes and fostering the implementation of small modular reactors (SMRs). Such steps are designed to stimulate growth within the advanced nuclear sector.
Addressing the audience at Davos, Trump asserted, "The USA is the economic engine on the planet. You all follow us down, and you follow us up," reinforcing the United States' leadership role in energy innovation and economic development.
Accompanying this political support, Bank of America analyst Dimple Gosai elevated Oklo's stock stance from Neutral to Buy, simultaneously raising the price target from $111 to $127. This upgrade reflects confidence drawn primarily from Oklo's recently executed binding agreement with Meta Platforms Inc (NASDAQ: META), marking a significant advance in commercial nuclear energy development.
This transformative deal involves a multi-phase collaboration to construct an advanced nuclear power campus with an approximate generating capacity of 1.2 gigawatts near Pike County, Ohio. As part of the arrangement, Meta has committed $25 million in initial Phase 1 prepayments, facilitating early-stage development activities prior to the formalization of power purchase agreements.
Bank of America characterized the partnership with Meta as "tangible proof of execution," emphasizing that it demonstrates a transition of advanced nuclear technology from conceptual frameworks into active deployment. The revised $127 price target reflects an expansion in peer valuation multiples—from 16.5 and 15.6 times projected 2032 and 2033 earnings per share estimates, respectively, to 25 and 19 times—and incorporates additional revenue anticipated through the Meta agreement.
Further financial projections by the firm indicate an increase in Oklo's revenue estimates for 2036, rising to $5.9 billion from a prior estimate of $5.5 billion. Additionally, the forecasted deployed generating capacity has been adjusted upward to 6.7 gigawatts from 6.3 gigawatts, underscoring expected growth fueled in part by the Meta collaboration.
Regarding Oklo's recent market activity, shares were reported to be stable with a slight gain of 0.69%, trading at approximately $90.53 during midweek sessions as noted by Benzinga Pro, marking continued investor interest amidst evolving nuclear sector dynamics.
Key Points:
- Oklo's stock has rallied in connection with growing endorsement of nuclear power by influential political figures and improving federal regulatory mechanisms.
- President Trump's advocacy at the Davos forum frames nuclear energy as a competitively clean and reliable alternative to renewable energy sources challenged by cost and intermittency.
- Bank of America upgraded Oklo from Neutral to Buy, attributing the revision largely to the firm's binding partnership with Meta to develop a sizable advanced nuclear facility.
- Financial forecasts for Oklo have been revised upward, reflecting increased projections for revenue and deployed capacity through the mid-2030s.
Risks and Uncertainties:
- The reliance on the successful execution of a complex, multi-phase nuclear facility development introduces project execution risk.
- Regulatory and licensing processes, despite recent acceleration efforts, remain subject to potential delays or changes in policy that could impact timelines.
- Market adoption of advanced nuclear technology could be affected by competing energy sources or shifts in governmental energy policy post-Trump administration.
- The financial metrics and projections depend on long-term contracts and capital commitments, which may be vulnerable to economic or market fluctuations.