The significant surge in Oklo's stock value by over 178% occurred during October.
The significant surge in Oklo's stock value by over 178% occurred during October.
Oklo (Oklo with a 2.67% stake) isn't widely recognized within households, but the nuclear investment was catching the attention of investors last month due to sector-related news surge.
Oklo is a company in its developmental stage, backed by the OpenAI CEO, Sam Altman. At present, it doesn't generate any revenue. However, nuclear power is increasingly becoming a preferred energy source for significant tech companies and billionaire investors. With the rise of interest in nuclear energy, investors looking for involvement in the sector piled into Oklo last month.
As per data from S&P Global Market Intelligence, the stock concluded the month with a surge of 177.6%, nearly triple its original worth. You can visualize this development in the chart below, showing two phase-wise growths in the stock value last month.
Is nuclear set to be the next big thing?
Oklo, a company specializing in fission technology and producing small modular reactors, had a promising start in October, potentially in response to Microsoft's agreement with Constellation Energy to reactivate a nuclear facility at Three Mile Island in Pennsylvania.
Later, it shed most of those gains but soared again beginning on Oct. 14. The day afterwards, it disclosed that the Department of Energy had approved its conceptual safety design report for its Aurora Fuel Fabrication Facility, a crucial step towards the launch of its first plant.
Separately, investors celebrated after Alphabet signed an agreement with Kairos Power to utilize small modular reactors for powering their AI data centers, demonstrating the data center industry's adoption of nuclear power.
The stock gained momentum again the following day after Amazon announced several deals for nuclear energy projects, including small modular reactors.
Despite the lack of additional news about the stock or the nuclear energy sector, Oklo stock continued to ascend towards the month's end, as more investors were attracted to the nuclear story, with Altman and Silicon Valley billionaire Peter Thiel's backing.
What is in store for Oklo
Following a decline in the beginning of November, Oklo shares have experienced a pullback, instigated by regulators blocking Amazon's deal for procuring nuclear power from Talen Energy's Susquehanna power plant for a surrounding data center.
Upon the intervention of utility companies American Electric Power and Exelon, the Federal Energy Regulatory Commission ruled out the upsurge in power consumption at Susquehanna by the PJM Interconnection grid operator.
The news serves as a reminder of the persistent uncertainties within the nuclear sector and the emphasis on grid reliability, as energy demand escalates.
Anticipate the Oklo stock to remain volatile as the nuclear narrative progresses.
Despite the temporary setback due to regulatory issues with Amazon's nuclear energy deal, the interest in nuclear power and companies like Oklo continues to grow. With prominent tech companies and investors backing the nuclear sector, financial institutions are likely to keep a close eye on Oklo's developments in finance and investing. The company's financial health and success in its fission technology and small modular reactor projects could significantly impact its stock value and attract more investment opportunities.