Nuclear-power startup Oklo was handed a price target increase, representing a further 10% upside, early Thursday. In Wednesday trading, shares soared after the company said it had been selected by the Department of Defense to supply its emerging nuclear reactor technology to power the Eielson Air Force Base in Alaska.
Wedbush Securities analyst Dan Ives on Thursday increased his Oklo stock price target to 75, up from 55. The increase followed the announcement of the government deal. Ives noted that it is further evidence to support President Donald Trump's focus on the "AI revolution" and nuclear energy.
"We are raising our price target on OKLO from $55 to $75 as the Trump Administration's increases focus in the AI Revolution datacenter buildout with intentions to use nuclear energy to power the next 4th Industrial Revolution and the U.S. DOD becoming an increasing important customer/partner moving forward," Ives wrote.
"OKLO continues to build off its significant momentum following the executive order signed by President Trump in May," Ives added. "The Trump Administration continues to go all in on AI which will significantly increase the need for computing power which is expected to skyrocket over the next 5-10 years taking up a tremendous amount of energy."
Oklo Stock Falls On Offering
Oklo surged 29.7% to 68.12 in Wednesday's stock market action.
However, Oklo stock declined 7.5% at the stock market open Thursday despite the Wedbush price target hike. Oklo oscillated wildly throughout stock market trade, hitting a new record high of 71 intraday, before closing down 5.2% to 64.47.
Oklo reported late Wednesday it will offer $400 million in shares, with an underwriters option to buy an additional $60 million of shares. The company said proceeds will be used for "general corporate purposes, working capital and capital expenditures and potential future investments."
Oklo's Nuclear Deal
Chief Executive Jacob DeWitte said in the press release Wednesday that this agreement with the Department of Defense and the Department of the Air Force "reflects continued confidence in Oklo's ability to deliver clean and secure energy solutions for mission-critical infrastructure."
Oklo will build, own and operate the facility and William Blair analyst Jed Dorsheimer expects a 30-year power purchase agreement under the deal.
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"We believe this announcement is a direct result of the White House's executive order promoting advanced nuclear reactors for DoD and national security interests, which created a new streamlined regulatory pathway that bypasses the NRC all together," Dorsheimer wrote Wednesday.
Dorsheimer noted that the Eielson-Oklo engagement was previously announced back in August 2023, but then rescinded a month later as "the regulatory red tape tightened."
Oklo, which until recently had the involvement of OpenAI CEO Sam Altman, is looking to bring its first commercial small modular reactor, or SMR, online in late 2027 or early 2028.
Currently there are no SMRs in commercial operation.
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Trump in late May signed four executive orders to support the nuclear energy sector and put in place a "total and complete reform" of the Nuclear Regulatory Commission, or NRC. The executive orders also look to speed up the deployment of new nuclear power reactors in the U.S.
The May 23 executive orders directed the government to cut down on regulations and fast-track licenses for reactors and power plants to shrink a multiyear process to 18 months, the Financial Times reported.
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The Trump White House defines AI as a national security objective and stipulates that the Departments of Energy and Defense work with the private sector to accelerate deployments of SMRs, to power AI.
Big Tech has been bullish on investing in SMRs as a way to power data centers to train artificial intelligence models.
SMRs aim to provide power at the site level, drastically reducing the time and cost of permitting, constructing and operating full-scale nuclear facilities.
Stocks Soar On Oklo News
For the 2025 stock market, Oklo stock is up 220% after booking a 122% gain in May. The stock jumped 101% in 2024. But the gain involved some wild gyrations.
Meanwhile, S&P 500 nuclear stocks Constellation Energy and Vistra advanced around 3% and 3.4%, respectively, on Thursday.
SMR-focused NuScale Power advanced about 1% in Thursday's stock market. SMR stock jumped 20.6% on Wednesday.
Nano Nuclear Energy fell about 3% Thursday after soaring 12.2% in stock market trade Wednesday
Canada-based uranium refiner Cameco gained 1% on Thursday. Cameco also has direct exposure to small-modular-reactor nuclear technology through its shared ownership of Westinghouse.
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Cameco stock is above a traditional 62.27 buy point from a cup-with-handle base, according to MarketSurge weekly chart analysis.
Uranium miner Centrus Energy moved 0.5% lower Thursday after jumping about 8.4% on Wednesday.
Energy Fuels, a uranium exploration and mining play, fell a fraction in Thursday's stock market.
Oklo stock has a 93 Composite Rating. The stock also has a perfect 99 Relative Strength Rating. The nuclear stock has a 49 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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