Why Oklo Stock Soared 178% in October

In October, the shares of Oklo, a nuclear start-up, surged significantly, driven by heightened interest in the nuclear energy sector.

Oklo (OKLO -2.23%) may not be a recognized name for many investors, but its stock gained considerable attention last month due to developments within the industry.

This development-stage company, notable for being supported by prominent figures such as OpenAI CEO Sam Altman, currently has no revenue. However, as nuclear energy gains favor with major tech firms and wealthy investors, many have turned to Oklo to tap into this emerging market.

According to data from S&P Global Market Intelligence, Oklo's stock was up 177.6% by the end of the month, a nearly threefold increase. The stock's rise can be understood in two key phases throughout October.

Is Nuclear Energy the Future?

Oklo, which specializes in fission technology and small modular reactors, started the month strong, likely influenced by a significant deal announced by Microsoft with Constellation Energy regarding the revival of a nuclear power facility at Three Mile Island in Pennsylvania.

After an initial spike, the stock experienced a small pullback but then gained momentum again starting on October 14. The subsequent day, Oklo revealed that the Department of Energy had approved its conceptual safety design report for the Aurora Fuel Fabrication Facility, a crucial milestone for launching its first plant.

Investor enthusiasm grew further when Alphabet announced a collaboration with Kairos Power to utilize small modular reactors at its AI data centers, pointing to the data center sector's growing acceptance of nuclear energy. Following this, Amazon disclosed that it had entered into multiple agreements for nuclear energy projects, including small modular reactors.

The momentum continued for Oklo even without any new specific news about the company or the broader nuclear energy landscape.

After some fluctuations, Oklo's stock soared once more towards the end of the month as more investors recognized the potential of nuclear energy. The backing of influential figures like Altman and tech billionaire Peter Thiel played a role in attracting interest.

What Lies Ahead for Oklo

As November began, Oklo's shares saw a decline following regulatory setbacks that prevented Amazon's agreement to acquire nuclear power from Talen Energy for a nearby data center.

The Federal Energy Regulatory Commission ruled, after objections from utility companies like American Electric Power and Exelon, that the grid operator, PJM Interconnection, would not be allowed to increase the power consumption at Susquehanna.

This event highlighted ongoing uncertainties within the nuclear sector, emphasizing that grid reliability remains a priority as energy demands rise.

As the nuclear narrative continues, investors should prepare for potential volatility surrounding Oklo's stock.

nuclear, stocks, energy