This Nuclear Upstart Is Crushing the Market. Should You Plug In?
Oklo is developing next-gen microreactors that use recycled nuclear waste as fuel.
Compelling catalysts and timely tailwinds have lifted the stock higher in recent months.
Despite the hype, Oklo is a "pre-revenue" company trading at a sky-high valuation.
10 stocks we like better than Oklo ›
If you're looking for a super-charged growth stock with an AI angle, there's a nuclear option to consider. I'm talking about Oklo (NYSE: OKLO), a next-generation nuclear power company on a mission to reboot atomic energy for the age of artificial intelligence.
Established in 2013 by MIT alums Jacob DeWitte (now chief executive officer) and Caroline Cochran (now chief operating officer), Oklo went public in May 2024 via a merger with AltC Acquisition Corp., a SPAC led by OpenAI CEO Sam Altman. Altman stepped down as Oklo's chairman in April.
Oklo's mission is to develop compact, next-gen nuclear reactors that are efficient, "walk-away safe," and capable of turning recycled nuclear waste into clean, reliable energy. The company's first commercial reactor is expected to come online in late 2027 or early 2028.
Oklo's goal of reimagining nuclear power has certainly piqued Wall Street's imagination. Oklo's stock has rocketed 190% higher in 2025 as of the June 19 market close, and it's up 564% over the past year despite the company not yet having any revenue.
Should you add this high-flying energy stock to your portfolio, or are you better off watching from the sidelines to see how the story unfolds? Let's dive in.
Nuclear energy is having a moment. In May, President Donald Trump issued a flurry of executive orders aimed at jump-starting domestic production of nuclear power, with the goal of quadrupling capacity by 2050. The orders emphasize the need for AI-ready power infrastructure, recycling of spent nuclear fuel, and faster licensing of advanced nuclear reactors, all of which play right into Oklo's hands.
Oklo already has a site use permit from the Department of Energy to build its first microreactor at the Department of Energy's Idaho National Laboratory, and an agreement with the Idaho National Laboratory to use recycled nuclear fuel as a uranium source. That means Oklo is poised to hit the ground running in a sector that's flush with political capital.
Although Oklo is developing the type of advanced reactors that are named explicitly in Trump's executive orders, it's important to note that this isn't new technology.
Oklo's reactor design is modeled after the government's EBR-II (Experimental Breeder Reactor-II), a liquid-metal-cooled, metal-fueled fast reactor that operated safely for 30 years (1964-1994). The EBR-II is a powerful proof of concept for Oklo's design, as it demonstrated that fast reactors can use nuclear waste as fuel, shut down safely under adverse conditions, and run for long periods without refueling. (Oklo claims its microreactors can go up to 20 years without refueling.)
Here's the takeaway for investors: Oklo is modeling its reactor design on proven technology, and it's perfectly positioned to capitalize on a tectonic policy shift that could generate billions of dollars in nuclear infrastructure investment in the coming years.
A unique aspect of Oklo's go-to-market strategy is its build-own-operate model.
Unlike traditional nuclear vendors that sell reactors to utilities, Okla plans to build, own, and operate its microreactors, selling electricity directly to customers via long-term power-purchase agreements. Not only will that provide recurring revenue, but it also will give Oklo more control over deployments, and a streamlined path to regulatory approvals.
Oklo has another potential revenue stream: newly acquired subsidiary Atomic Alchemy, which is developing a domestic supply of high-demand radioisotopes for use in medicine, AI chip manufacturing, and national defense. This vertical gives Oklo an opportunity to tap into a market estimated to be worth nearly $60 billion, while showcasing the versatility of its core reactor technology.
In short, Oklo isn't just building reactors. It's building a vertically integrated nuclear ecosystem -- from power generation to isotope production -- that could serve as critical infrastructure for the insatiable energy demands of AI data centers.
Oklo is an AI play and a clean energy play, with no shortage of potential catalysts to keep running higher. In recent months, Meta, Microsoft, and other tech giants have made long-term commitments to nuclear power for their next-gen data centers.
That said, Oklo is still a pre-revenue company -- meaning it has no revenue/sales -- and it's trading at a price-to-book (P/B) ratio of 32.15, which is lofty by just about any standard. For perspective, Constellation Energy is trading at a P/B multiple of 7.4, while NuScale -- another pure-play advanced nuclear company -- is trading at a P/B of 7.3.
In my opinion, Oklo's current valuation is in more of a danger zone than a buy zone.
While the Trump administration is pushing hard to fast-track advanced reactors, policy support by itself doesn't guarantee regulatory approvals -- or near-term revenue. Because Oklo will build, own, and operate its microreactors, the company's initial pathway to licensing approval is more complex and comprehensive than the traditional approach, which could lead to delays. In the meantime, the risk of dilution is always looming. Case in point: Oklo recently announced a $400 million secondary stock offering.
For now, Oklo goes on my watch list. I'm excited about the technology, but I'd need to see a concrete path to commercialization and revenue (which very well could be coming soon) before adding this stock to my portfolio.
Before you buy stock in Oklo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Oklo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!*
Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Josh Cable has positions in Microsoft. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool recommends NuScale Power and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
This Nuclear Upstart Is Crushing the Market. Should You Plug In? was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
35 minutes ago
- Yahoo
Oklahoma City (OK) Mayor David Holt Elected New President of the U.S. Conference of Mayors, Policy Agenda Adopted for the Year Ahead, as Annual Meeting Concludes
San Diego (CA) Mayor Todd Gloria and Lincoln (NE) Mayor Leirion Gaylor Baird Elected First and Second Vice Presidents TAMPA, Fla., June 22, 2025 /PRNewswire/ -- Today, the U.S. Conference of Mayors (USCM) voted to elect a new leadership team and approved a slate of policy resolutions that will serve as the official platform of the organization and guide its advocacy agenda for the year ahead. The business meeting marked the close of USCM's 93rd Annual Meeting, which convened more than 170 mayors from across the country in Tampa, Florida. Oklahoma City (OK) Mayor David Holt was elected by his fellow mayors to serve as the next President of the U.S. Conference of Mayors. He will serve a one-year term. "There is no more important place in human existence than the city, and there is no higher office than the Mayor," said President Holt. "The Conference of Mayors sits at the epicenter of America's future. If that future is to be as bright or brighter than the past, it will be because of the work that happens right here." "This Conference is fortunate to lean on the leadership of Mayor Holt in this time of opportunity and need for America's cities," said Tom Cochran, USCM CEO and Executive Director. "He champions the value of local leadership, and he embraces the power this Conference has to unite so many voices to improve the lives of the people of America's cities. I know his colleagues are grateful to have him steering the ship." In addition to elevating Mayor Holt to USCM president, mayors elected San Diego (CA) Mayor Todd Gloria as First Vice President and Lincoln (NE) Mayor Leirion Gaylor Baird as Second Vice President. The Conference also named new Trustees and Advisory Board Members. New USCM Trustees are as follows: Scranton (PA) Mayor Paige Cognetti Albuquerque (NM) Mayor Tim Keller Columbia (SC) Mayor Daniel Rickenmann These mayors, in addition to the current elected top leaders and past presidents, make up the USCM Executive Committee. New USCM Advisory Board Members are as follows: Redmond (WA) Mayor Angela Birney Carmel (IN) Mayor Sue Finkam Chicago (IL) Mayor Brandon Johnson Tucson (AZ) Mayor Regina Romero Mount Vernon (NY) Mayor Shawyn Patterson-Howard A major component of today's meeting was also the consideration and adoption of policy resolutions. Throughout the Annual Meeting, the standing committees of the Conference met to propose and advance resolutions on a wide range of priorities for American mayors. Of particular emphasis today, the full Conference adopted a policy that calls for recalibrating federal immigration enforcement, protecting local control in public safety and with federal resources, preserving economic growth, and continuing to improve cities' affordability and quality of life. Other policies were adopted on issues including energy, housing, the environment, transportation, and the economy. The resolutions adopted today now make up the official policy of the U.S. Conference of Mayors and can be found here. Next year's Annual Meeting will be in Long Beach, California. About the United States Conference of Mayors – The U.S. Conference of Mayors is the official nonpartisan organization of cities with populations of 30,000 or more. There are more than 1,400 such cities in the country today, and each city is represented in the Conference by its chief elected official, the mayor. Follow our work on X, Facebook, Instagram, LinkedIn, Threads, and Medium. View original content to download multimedia: SOURCE U.S. Conference of Mayors Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
37 minutes ago
- Forbes
Wall Street Is Steadily Investing In Energy As An Inflation Hedge
CULVER CITY, CA (Photo by) At the end of last week, fund managers had built up the largest net long position in crude oil futures in nine months, according to data from the Commodity Futures Trading Commission. It is serving as a necessary inflation hedge given a growing conflict in the Middle East, and declining drilling at home. The biggest risk to equity returns remains inflation and funds need to protect themselves. Inflation also risks prolonging the current period of high rates, which is already taking its toll on several asset classes, including housing. Oil and energy equities broadly are increasingly appealing as a result of these dynamics. Funds flow into energy is expected to continue and the recent involvement of the U.S. in Iran will only accelerate this move. In the latest Bank of America fund manager survey, energy and materials still remained unloved, with managers net underweight. This is even after the recent increase, as allocations were near record lows just earlier this year. Yield and an inverse correlation to bonds has been another benefit of the trade. The yield on XLE, the energy sector ETF, is also almost three times that of the broader market, providing income that closer tracks inflation. It has also been performing as a hedge when bonds, the historical hedge in the 60/40 portfolio, have been failing. Periods of increased inflation expectations, as seen with the initial tariff announcements, now see both bonds and equities dropping in parallel. This is because inflation would force rates to remain high right as the U.S. refinances a sizable chunk of government debt this summer. The already large deficit means that higher rates become a self-fulfilling problem as more and more of future bond raises goes towards paying interest, which investors demand a higher rate for, creating a growing deficit spiral in an inflationary environment. The above strategy has played out in actual returns. US equities are up only slightly this year, a little over 1%, while emerging markets and commodities have outperformed, with gold up over 25%, oil up over 5%, silver up over 20%, emerging markets up over 10%, and bonds returning a little less than 1%. Several other dynamics make continued energy outperformance, and increased fund exposure likely, and these are outside of the increasing conflict in the middle east. The first is that escalating equipment costs, due to a combination of climbing labour costs and changing supply chains, benefits incumbent energy names. The second is that power demand shows no signs of slowing down with natural gas being the winner in AI data centers that require both scale and reliability. This is also during a period that the US wants to continue to grow natural gas exports, creating multiple demand levers at a time when storage availability remains flat. That creates an asymmetry where prices can spike to the upside. The third is that oil rigs have dropped by 9% in the U.S. as producers pulled back capital amidst economic uncertainty. This reduces the chance that supply will overwhelm demand and helps alleviate some of the downside risks to the trade. While energy investing always has a risk, an allocation as a hedge, especially given the broader macro tailwinds, is increasingly appealing for funds. This continues to show up in recent funds flow and is expected to only increase this coming week with both energy equities and oil prices likely to spike on the news of U.S. strikes.
Yahoo
44 minutes ago
- Yahoo
Owners claim Maui residents can't afford converted vacation rentals, UH study says otherwise
Owners and managers of Maui short-term vacation rentals have argued during two days of public hearings that local residents cannot afford the rent if 6, 100 units are converted into long-term housing, as proposed by Mayor Richard Bissen. Residents who also testified before the Maui County Council last week in support of Bill 9 repeatedly have called the claim offensive. An economic analysis by the University of Hawaii Economic Research Organization backs up the residents' testimony. The analysis shows that over 11, 600 Maui households—or 21 % of all households on the island—already use 30 % of their incomes to pay for housing and could afford to move into converted units because the owners would see their tax rate fall to Maui County's lowest rate as the value of their homes continues to drop. The pool of Maui residents already paying even more of their incomes for housing is even greater. An additional 15, 500 Maui households use 30 % to 50 % of their incomes toward housing, according to the UHERO analysis, and they also could afford to rent converted vacation rentals, meaning long-term housing for a total of over 27, 100 Maui households. Matt Jachowski, one of Bissen's executive assistants, told the Honolulu Star-Advertiser, 'Many of our households already spend that range of money on housing.' Some '27 % of all renters in the county are already cost-burdened, ' Jachowski said. 'So it's obtainable.' The Maui County Council's Housing and Land Use Committee will have to vet the competing claims when it resumes hearings all day Monday and again Tuesday night. All nine members of the Council serve on the committee, so the committee vote on Bill 9 will provide a strong indicator of how the full Council will act on the measure. If approved, Bill 9 would take effect in West Maui by July 1, 2028. The units in question represent less than half of Maui's estimated 13, 000 legal short-term vacation rentals, and Bissen previously told the Star-Advertiser that tourists remain welcome on Maui. Bissen said he wants to free up housing for local residents and bring better balance to the proportion of vacation rentals on Maui, which has more short-term vacation rentals than even Oahu. On Maui, temporary vacation rentals make up 21 % of the housing inventory. 'Maui is this complete outlier in how many TVRs we have, ' said Jachowski, noting the figure is only 3 % for London, which has the highest percentage of housing dedicated to transient vacation rentals compared to Los Angeles, Boston and Barcelona. UHERO ALSO reported that the total monthly cost of housing for Maui residents to move into a converted short-term vacation rental also would fall, from $5, 829 to $4, 601, because of declining property values and taxes. Maui County witnessed eight consecutive years of increased condo sales prices, from $402, 000 in 2016 to $900, 500 in 2024. But prices dropped for the first time since 2016 after Bissen introduced Bill 9. In the first five months of 2025, the average sales price has fallen from $900, 500 to $760, 000. Several owners of short-term rentals and their property managers have testified that no one wants to buy on Maui since Bill 9 was introduced, especially potential out-of-state investors who would be barred from renting them to tourists for their vacations. Owners' monthly cost for a vacation rental, including mortgage, insurance, association fees and other expenses, were running at $5, 800 per month, Jachowski said. Now, with Bill 9 on the table, the costs have fallen to $4, 601 per month, putting the lower price within reach of the 27, 100 Maui residents who already pay that much, he said. UHERO looked at other cities that now restrict 1 % of their short-term vacation rentals and found that housing prices and rents fell by 4 % in Los Angeles and London and by lesser amounts in Barcelona and Boston. Bill 9 would 'revert ' all apartment district properties to long-term residential use and remove the exception for transient vacation rental units built or approved before 1989. For Maui residents who can afford to buy one of the converted units, the tax rates would plummet from $12.50 per $1, 000 of value to just $5 for an owner-occupied unit, Jachowski said. BISSEN spokesperson Laksmi Abraham acknowledged UHERO's expectation of job losses in Maui's short-term vacation rental industry but said there will still be a need for workers in the nearly 9, 000 remaining vacation rentals, including plumbers, electricians and others to work on the units that convert to long-term housing. Short-term rentals average only 53 % occupancy annually, and Abraham said those that remain for tourists 'will see an uptick in their occupancy and they're still going to need somebody to manage a lot of these units. There will be impact, but the transition won't be as drastic as UHERO paints it to be.' At the same time, Ja chow ski noted that UHERO said that as the 'affordability of housing improves, housing costs are also going down, and that's important.' Maui short-term vacation rental owners and their property managers also have repeatedly argued that local residents do not want to live in their one-and two-bedroom units—a claim residents also called offensive. Data compiled in the aftermath of the Aug. 8, 2023, wildfire that destroyed 3, 500 homes in Lahaina backs up local renters. Many of them have scrambled over the last two years to find and afford increasingly expensive long-term housing. Before the disaster, many survivors were living in large multigenerational homes that were destroyed. Since then, the Federal Emergency Management Agency and the Council for Native Hawaiian Advancement had the highest demand for one-and two-bedroom units as individual, smaller family units that used to live in multigenerational homes searched for housing for themselves, Jachowski said. 'The data clearly shows we have a lot of households that are smaller and could benefit from smaller homes, ' he said. IN 2024, Gov. Josh Green signed Senate Bill 2919 into law clarifying that each county has the authority to determine what to do with transient vacation rentals as the state faced an ongoing shortage of 50, 000 homes. Bissen was the first to respond with Bill 9. Bissen and Green have repeatedly said Maui and the state cannot build their way out of the lack of housing. To them, converting vacation rentals into long-term housing represents the most logical path forward. State Rep. Luke Evslin (D, Wailua-Lihue ), who chairs the House Committee on Housing, has been working on ideas ahead of the next legislative session to create more housing but said the counties now control the future of their own short-term vacation rentals. 'We've done all we can do on the short-term vacation issue, ' Evslin said. 'At this point, it's up to them.' Several members of the Honolulu City Council's Housing, Homelessness and Parks Committee did not respond to Star-Advertiser requests for comment on what they might do about converting Oahu's short-term vacation rentals. Matt Weyer, who serves on the housing committee, said he's more interested in cracking down on the estimated 118 to 120 illegal short-term rental units in his district, especially in residential and rural areas around Turtle Bay Resort. Weyer's Council district stretches across the North Shore down to the upper Windward side and as far south as Mililani. In the North Shore alone, Weyer said, there are about 262 legal short-term rentals, and he has not heard an outcry from residents to convert them into long-term housing. 'I wouldn't say phasing them out would solve the problems we're facing, ' he said. 'We're looking at how we can best target illegal vacation rentals … by enforcing the existing laws. That's the struggle. We want to ensure that folks that are doing it illegally are doing it legally. That really creates the biggest impact.' U.S. Rep. Jill Tokuda, whose district includes rural Oahu and the neighbor islands, said that converting Maui's 6, 100 short-term vacation rentals into long-term housing might help the island's housing shortage and stem the exodus of local residents to the mainland. 'We've got to do something, ' Tokuda said. 'It's going to require some bold, pretty bold action to keep people here and to free up available units for local families. If not, they're going to keep leaving.'
