TLDR
- Wedbush raised Oklo’s price target to $55 from $45, maintaining Outperform rating as nuclear stocks rallied on Trump policy expectations
- Oklo stock jumped 7.91% to close at $39.72 as investors anticipated executive orders to streamline nuclear reactor approvals
- Company’s direct power sales model through long-term contracts provides recurring revenue advantage over traditional reactor sales
- Sam Altman stepped down as Chairman, potentially opening doors for partnerships with OpenAI and other tech companies
- Oklo plans to deploy its first nuclear plant at Idaho National Laboratory by end of 2027
Oklo stock climbed 7.91% Friday as nuclear energy companies rallied ahead of expected executive orders from President Trump. The small modular reactor company closed at $39.72 with a market cap of $5.5 billion.
Wedbush analyst Daniel Ives boosted Oklo’s price target to $55 from $45 while keeping an Outperform rating. The new target represents 17% upside from current levels.
Nuclear stocks across the board saw strong gains in premarket trading. NuScale Power rose 17%, while Lightbridge climbed 18%.
Centrus Energy jumped 22% as the sector prepared for policy changes. The rally came as investors anticipated Trump’s nuclear-focused executive orders.
🚨 BREAKING: President Trump is set to sign executive orders boosting NUCLEAR POWER in the USA, easing regulations on approvals for new reactors, possibly tomorrow.
He will do so by invoking the COLD WAR-era Defense Production Act, declaring an emergency over our reliance on… pic.twitter.com/uLwsaoUoN1
— Eric Daugherty (@EricLDaugh) May 22, 2025
The orders are expected to ease regulatory approval processes for new reactors. They will also direct federal agencies to identify lands for nuclear deployment.
Constellation Energy, the nation’s largest carbon-free energy provider, rose 5% on the news. GE Vernova gained 3.2% while Vistra climbed 4.1%.
Business Model Creates Revenue Advantage
Ives highlighted Oklo’s direct power sales approach as a competitive advantage. The company sells electricity directly to customers under long-term contracts rather than selling reactors.
This model positions Oklo to generate steady recurring revenue while avoiding common nuclear project challenges. The company maintains strong liquidity with a current ratio of 36.23 and more cash than debt.
Oklo’s Aurora Powerhouse can hold up to 75 megawatts of capacity. The system is designed to serve large-scale data operators without requiring design changes.
The data center market represents a key growth opportunity for small modular reactors. Energy demand for data storage and processing continues to climb as AI applications expand.
The analysts see an opportunity for Oklo to grow in the small modular reactor space. This comes as demand surges for energy to support data creation, storage, and processing.
Leadership Changes Open Partnership Doors
Sam Altman recently stepped down as Oklo’s Chairman of the Board. Ives sees this move as potentially positive for forming partnerships with OpenAI and other major tech companies.
Altman’s backing has been a strength for Oklo’s operational strategy. His departure from the board role could reduce potential conflicts of interest for future deals.
Former Oklo Chairman Chris Wright was confirmed to lead the U.S. Department of Energy in February. This connection to the new administration could benefit the company’s regulatory timeline.
Oklo plans to deploy its first nuclear power plant at Idaho National Laboratory by end of 2027. The company recently completed borehole drilling for site characterization as part of the licensing process.
The company will submit its combined license application to the Nuclear Regulatory Commission later this year. The ADVANCE Act could reduce licensing costs by 55% if passed.
Oklo reported Q1 2025 earnings per share of -$0.07, beating expectations of -$0.08. The company posted an operating loss of $17.9 million for the quarter.
The company is expanding its Atomic Alchemy division and expects revenue from this venture by early to mid-2026. Customer pipeline now exceeds 14 gigawatts across data centers and government sites.
Other nuclear companies could benefit from the expected executive orders. These include uranium firms Energy Fuels, Cameco, and Uranium Energy.
Analyst price targets for Oklo range from $30 to $58 with current consensus suggesting upside potential. The stock has gained 423% over the past year.
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