Oklo Inc. Joins DOE Program, Stock Performance Impresses Investors

Oklo Inc. (OKLO) has recently become a participant in the U.S. Department of Energy (“DOE”) Voucher Program to evaluate and test advanced structural materials intended for its Aurora powerhouse. This initiative seeks to improve manufacturing efficiencies, fortify the supply chain, and accelerate Oklo’s commercial deployment of nuclear technologies.

The program is managed by ENERGYWERX in collaboration with Oak Ridge National Laboratory and focuses on material validation for Oklo’s fast reactors.

This partnership aims to enhance Oklo’s reputation for delivering scalable and cost-effective clean energy solutions, potentially attracting investors who target long-term growth within the nuclear energy sector. However, before making any investment decisions, it’s prudent to analyze the stock’s performance over the past year, examine growth prospects, and identify any risks involved.

OKLO Stock Performance: Strong Growth Against the Market

Oklo’s shares have surged an impressive 189.5% in the past year, significantly exceeding the Zacks Alternative-Energy industry’s return of 49.4% and the broader Zacks Oils-Energy sector’s slight decline of 0.2%. Additionally, it has outpaced the S&P 500’s increase of 16.2% during the same timeframe.

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Other industry players like GEV Vernova (GEV), Constellation Energy Corporation (CEG), and Bloom Energy (BE) have also shown strong performances, increasing 158.3%, 141.1%, and 113.7%, respectively, over the past year.

Factors Driving Oklo’s Price Surge

The rise in Oklo’s stock can be attributed to the widespread global transition toward clean energy. This has been bolstered by the company’s robust quarterly results and strategic partnerships aimed at enhancing its influence in clean power generation.

In the third quarter of 2024, Oklo expanded its customer pipeline by adding two data centers, resulting in a total announced capacity of 2,100 megawatts—representing a 200% increase since July 2023. This growth demonstrates Oklo’s increasing presence in the clean power market.

In January 2025, Oklo signed a Memorandum of Understanding (“MOU”) with Lightbridge Corporation to explore the co-location of a Lightbridge Commercial-scale Fuel Fabrication Facility at its proposed site, thereby enhancing its fuel recycling capabilities. Furthermore, in December 2024, the company entered a non-binding Master Power Agreement with Switch to deploy 12 gigawatts of Oklo Aurora powerhouse projects by 2044.

Earlier in September, the completion of a Memorandum of Agreement (“MOA”) with the DOE Idaho Operations Office allowed Oklo access for site investigations at a preferred Idaho location. Being the only advanced fission company with a DOE site use permit, combined with substantial regulatory progress and a secure fuel supply, positions Oklo to deploy the first commercial advanced fission power plant in the U.S.

Future Outlook for OKLO Stock

The increasing number of data centers and rising electricity demand in developing economies serves as a significant driver of energy consumption. The United States, currently the largest nuclear power producer, contributes nearly 30% to the global nuclear electricity generation, according to the World Nuclear Association.

In response to these trends, Oklo is developing its next-generation fast-fission power plants known as “powerhouses,” designed to produce 15-50 megawatts electric (MWe) using a combination of recycled and fresh nuclear fuel, with potential scalability up to 100 MWe. This strategy positions Oklo for long-term growth in the nuclear energy sector.

It’s worth noting that Oklo has yet to generate revenues, with the first Aurora powerhouse anticipated for deployment in 2027. This timeline indicates limited near-term financial performance, while the company incurs significant operating costs related to technology development, impacting its bottom line. Thus, the short-term financial outlook remains uncertain, which could be a concern for potential investors.

While OKLO holds strong long-term potential in the nuclear energy market, its near-term financial challenges and delayed revenue generation could dampen investor sentiment.

The Zacks Consensus Estimate for first-quarter and full-year 2025 loss per share has not changed over the past 60 days. This steadiness suggests analysts have stable expectations for the company’s performance in the immediate future, and no significant positive changes are forecasted for OKLO in that timeframe.

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Despite this, a year-over-year improvement is evident in the estimates.

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Positive Indicators: OKLO’s P/B Value

An examination of the company’s trailing 12-month Price/Book (P/B) ratio reveals a favorable outlook. Oklo’s higher P/B compared to its industry counterpart indicates investor optimism regarding its growth prospects, as they are willing to pay a premium per dollar of book value relative to others in the same sector.

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Conclusion

In conclusion, investors keen on clean energy stocks may consider adding OKLO to their portfolios. Key factors include its strong P/B ratio, long-term growth prospects within the clean energy market, year-over-year growth indicated in its earnings estimate, and impressive share price performance over the last year.

The stock currently holds a Zacks Rank #2 (Buy), which strengthens this investment outlook. Investors can find the complete list of Zacks #1 Rank (Strong Buy) stocks online.