Shares of nuclear energy startup Oklo (OKLO) surged this week following a series of developments that included a new government contract and a bullish analyst outlook, Investor’s Business Daily reports.
On Thursday, Wedbush Securities raised its price target for Oklo stock to $75, up from $55, citing growing momentum around the company’s technology and recent federal support for nuclear energy initiatives.
The upgraded forecast comes one day after Oklo announced it had been selected by the US Department of Defense (DoD) to provide its advanced nuclear reactor technology to power Eielson Air Force Base in Alaska. The deal marks a significant milestone for the company as it prepares to commercialize small modular reactor (SMR) systems in the coming years.
Wedbush analyst Dan Ives said the development reflects a broader trend in Washington to prioritize energy innovation as part of the country’s growing infrastructure for artificial intelligence (AI).
“The Trump administration’s focus on nuclear power and AI-driven infrastructure is a tailwind for Oklo,” Ives noted.
He pointed to rising demand for energy-intensive AI systems as a driver for alternative power sources like SMRs.
While Oklo shares soared nearly 30% to a record $68.12 on Wednesday, they slipped 7.5% to $62.97 at Thursday’s market open after the company announced a $400 million stock offering, with an option for underwriters to purchase an additional $60 million in shares. The company said proceeds would be used for general operations, capital expenditures, and potential investments.
Oklo CEO Jacob DeWitte called the DoD agreement a sign of confidence in the company’s ability to deliver “clean and secure energy solutions for mission-critical infrastructure.” According to analysts, the project may be supported by a long-term, 30-year power purchase agreement.
William Blair analyst Jed Dorsheimer noted that the project had been previously announced in 2023, but was temporarily delayed due to regulatory hurdles. Recent executive orders signed by former President Donald Trump in May are believed to have streamlined the regulatory path, enabling Oklo to move forward. The orders aim to cut licensing timelines for new reactors and reposition the Nuclear Regulatory Commission (NRC) under a reformed framework focused on national security and AI infrastructure.
Trump’s policy shift emphasized nuclear energy as essential to powering the AI revolution, directing the Departments of Energy and Defense to collaborate with the private sector on fast-tracking SMR deployment. Major tech firms have shown interest in SMRs to meet the soaring energy needs of AI data centers.
Oklo, once backed by OpenAI CEO Sam Altman, aims to bring its first commercial SMR online by late 2027 or early 2028. Currently, no SMRs are in commercial operation in the US.
Despite the Thursday pullback, Oklo stock remains one of the top performers in the energy sector, up 220% in 2025 following a 122% gain in May and a 101% increase in 2024. The stock boasts a 93 Composite Rating and a 99 Relative Strength Rating, though its EPS Rating stands at 49, indicating earnings performance still lags behind other metrics.
Other nuclear and SMR-related stocks saw mixed movement in early Thursday trading. NuScale Power (SMR) dipped after a sharp rise the previous day, while Cameco (CCJ) and Nano Nuclear Energy (NNE) also retreated slightly.
