Oklo Inc. shares climbed sharply on Tuesday, rising approximately 8% in early afternoon trading, as traders returned to nuclear stocks tied to artificial intelligence power demands and the U.S. push to accelerate advanced reactor deployment. The broader market remained mostly flat, with the SPDR S&P 500 ETF unchanged.
Oklo stock traded up $5.52 to $72.41, after reaching an intraday high of $73.77. More than 16 million shares changed hands, and the company's market capitalization hovered around $12.35 billion. Options activity was notably heavy, with volume more than double the daily norm and call contracts significantly outnumbering puts, according to Cboe data.
The move was driven by U.S. Energy Department discussions on surplus plutonium fuel and an upcoming July 4 deadline for a reactor pilot program. Oklo was selected last week by the DOE for advanced talks in a surplus plutonium program, which could provide fuel for its advanced reactors if security and safeguard checks are met. CEO Jacob DeWitte noted that fuel supply constraints remain a key bottleneck, as U.S. enrichment capacity has not kept pace with demand.
Oklo is positioning itself as a next-generation nuclear play, aiming to supply electricity and heat from small fast-fission reactors to large customers such as data centers, factories, and defense installations. However, investors are still awaiting proof of fuel security, regulatory approval, and commercial-scale operations. The company posted a net loss of $33.1 million for the first quarter, with operating losses of $51.2 million and operating cash burn of $17.9 million, though it held $2.54 billion in cash and marketable securities.
Peers also saw gains, with NuScale Power rising about 8% and Nano Nuclear Energy adding over 3%, suggesting a broader rally in nuclear stocks. newcleo, a European nuclear company working with Oklo on plutonium, was also in focus after Reuters reported its plans to go public on Nasdaq in a deal worth $2.4 billion.
Investors are closely watching the DOE's Reactor Pilot Program, which aims to have at least three advanced reactor concepts achieve criticality by July 4, 2026. Oklo's Atomic Alchemy unit plans to reach that milestone with its Groves Isotopes Test Reactor in Texas, which will produce isotopes for medical, research, and industrial use before moving to commercial operations.
Oklo has commercial backing from Meta, with a January deal for a 1.2-gigawatt nuclear energy campus in southern Ohio. Meta can prepay for some power and fund early work on the project, which would supply its data centers in the region.
Analyst views are mixed. Wedbush's Daniel Ives maintained an Outperform rating and $110 price target, citing potential lifts from AI-driven power demand and Oklo's build-own-operate model. However, risks remain, including Democratic lawmakers' proliferation concerns about the plutonium plan, fuel access hurdles, regulatory challenges, and a market with no commercial project yet operational.
The Nuclear Regulatory Commission is working to speed up small-reactor licensing, but Oklo's head of media and communications, Bonita Chester, told Reuters Events that the rule change still places a substantial burden on applicants. Adam Stein at the Breakthrough Institute suggested that Part 53 could completely change reactor licensing if applied correctly.
For now, Oklo's shares are moving on news rather than profits. The key question is whether fuel negotiations, DOE pilot updates, and customer funding will translate into actual permits, operating results, and power deals.
