The “Jensen Huang” effect lifts Oklo stock, but there’s a catch
Shares of Oklo (OKLO) got an unexpected lift last week Nvidia CEO Jensen Huang's enthusiastic endorsement of nuclear power’s role in the future of computing.
Speaking on an episode of the Joe Rogan Experience podcast, Huang argued that the next era of artificial intelligence will require vast, reliable energy supplies, adding that tomorrow’s data centers will increasingly be powered by small nuclear reactors.
His remarks, widely circulated across tech and financial circles, sent a ripple of optimism through nuclear-adjacent stocks, with Oklo among the notable beneficiaries.
Oklo shares rode the wave of Huang’s comments to a 24% rally at Thursday’s intraday high before giving back some of those gains later in the week. Even so, the stock finished the week up nearly 16%, climbing back above the $100 mark.
OKLO has now surged roughly 400% year-to-date, pushing its market capitalization to around $17 billion.
Huang’s comments carry outsized influence because he leads Nvidia, the world’s most valuable publicly traded company and the driving force behind the artificial intelligence boom.
As it happens, the type of compact nuclear reactors Oklo is developing could play a significant role in powering that boom.
Oklo’s role in the AI boom
Oklo is positioning itself as a key supplier of next-generation nuclear energy, focusing on fast reactors and small modular reactors.
Its flagship product, the Aurora Powerhouse, is designed to deliver clean, always-on electricity in a compact, modular format.
The company pitches the technology as scalable and suitable for powering data centers, industrial facilities, factories, communities, and defense installations.
In November 2024, Oklo announced that it had signed letters of intent with two major data-center operators for up to 750 MW of low-carbon power for U.S. facilities.
That's an explicit signal of the company’s ambitions to serve the rapidly growing data-center market.
The catch: Oklo’s business needs to grow into its sky-high valuation
Oklo may well end up playing a significant role in the next wave of nuclear-powered energy systems, but for now, its stock still behaves like a highly speculative growth bet.
The company is in the early stages of commercializing its microreactor technology and, as a result, has no meaningful revenue and no earnings to anchor its valuation. Investors are effectively pricing in a long runway of future growth
Those risks were underscored on Friday, when shares slipped after the company announced an at-the-market equity offering of up to $1.5 billion.
Such moves raise concerns about future dilution, especially for a company still funding development rather than generating consistent cash flow.
On the earnings front, Oklo reported a third-quarter operating loss of $36.3 million. As a pre-revenue company, Oklo has yet to generate any sales.