Wedbush Boosts Oklo Inc. Price Target Amid AI-Fueled Energy Demand
Price Target Adjustment: On Friday, Wedbush Securities increased its price target for energy firm Oklo Inc. OKLO from $26 to $45, while still rating the stock as “outperform.” This change reflects growing confidence in the expanding role of artificial intelligence (AI) in data center construction under the recent Trump Administration.
Impact of AI on Energy: Founded with support from OpenAI CEO Sam Altman, Oklo is focusing on developing nuclear fission plants aimed at large-scale energy production. In its recent note, Wedbush indicated that nuclear energy will be crucial in meeting the energy needs of data centers, with initiatives like Project Stargate setting the foundation for broader AI advancements.
Wedbush noted that due to Altman’s significant involvement in the AI sector, Oklo is well-positioned to become a significant player in this emerging market.
The firm added that the “AI revolution” is generating a higher demand for clean energy to support various AI projects. As the need for computing power is projected to rise, Oklo stands to benefit greatly from this increased demand.
Additionally, Oklo’s strategy of selling energy directly to customers, rather than through long-term contracts for its reactors, may provide it with stable, recurring revenue streams.
Financial Outlook: Currently, Oklo has yet to generate revenue, posting a net loss exceeding $63 million for the nine months ending September. Despite these challenges, investor interest remains strong.
On Friday, Oklo’s shares gained 7.8%, closing at $41.82, marking an impressive 91.4% increase year-to-date, based on data from Benzinga Pro.
The consensus price target for Oklo stands at $28.67, as indicated by analysts tracked by Benzinga, who overall maintain a “buy” rating for the stock.
Earlier this month, Citigroup raised its price target for Oklo from $10 to $31 but kept a “neutral” rating on the stock.
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