Nuclear power startup Oklo hit a record high on Wednesday but then tumbled along with several other hot stocks. Shares skidded again Thursday as Goldman Sachs initiated coverage of the nuclear company late Wednesday.
Oklo stock hit a record 144.49 intraday Wednesday, but reversed for an 8.05% tumble to 131.17. The nuclear stock sold off 9.2% to 119.12 during Thursday's stock market, testing its 10-day moving average. However, at Thursday's market close Oklo was still up 61% in September.
Goldman Sachs late Wednesday initiated coverage of Oklo with a neutral rating and a 117 price target. The firm wrote that there is a growing nuclear small modular reactor, or SMR, race in the U.S., with Oklo, NuScale Power and Nano Nuclear Energy leading the charge.
With Oklo's plans to bring its first commercial reactor online sometime in late 2027, or early 2028, Goldman Sachs noted Wednesday that Oklo is pursuing an "own-and-operate model," which provides more operational control by the company but comes with much greater financial risks and "considerable capital intensity." The analysts also wrote it sees a "catalyst-rich backdrop supporting the stock's elevated valuation levels in the near-to-medium term."
No commercially operating SMRs now exist, but a number of companies are developing the technology. SMRs could provide power at the site level, drastically reducing the time and cost of permitting, constructing and operating vs. larger grid-based nuclear facilities.
Oklo stock galloped 63.5% higher last week amid the launch of the Atlantic Partnership for Advanced Nuclear Energy between the U.S. and the U.K. which aims to accelerate reactor licensing and to strengthen collaboration. Energy Secretary Chris Wright also reiterated U.S. support for small modular reactor, or SMR, deployment last week.
Oklo Is Still Far From Sales Or Profit
Shares of the nuclear stock, which has had backing from OpenAI CEO Sam Altman, were up 461% in 2025 at the close on Thursday. However, analyst consensus sees Oklo remaining unprofitable through 2028. It is forecast to begin generating revenue in 2027, according to FactSet.
In August, Oklo gave details on its long-term strategy even as it reported a Q2 loss of $28 million, or 18 cents per share, with no sales. The company ended the second quarter with cash and equivalents of $226.8 million.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Oklo announced Monday it is breaking ground on its first reactor, called the Aurora Powerhouse, in Idaho.
William Blair analyst Jed Dorsheimer wrote Monday that Oklo stock "has enjoyed a significant run as momentum around nuclear energy continues to strengthen."
Dorsheimer said the "ground breaking demonstrates another step in converting sentiment into action, and the clear support from the administration and DOE will de-risk execution and timelines."
"We view Oklo as the best positioned in the group of advanced reactor companies and maintain our Outperform rating," Dorsheimer wrote.
Meanwhile, Seaport Research on Tuesday downgraded Oklo to neutral from buy without a price target following the ground breaking for the company's first reactor installation. The firm wrote there are a "number of positives" in Oklo's business development, but that the analysts are stepping to the sidelines based on valuation.
Is Pullback Over? It's Not Clear Yet. 5 Stocks Near Buy Points.
Nuclear Stocks Making Moves
Fellow SMR-focused plays NuScale Power and Nano Nuclear Energy also sank Wednesday and continued to fall Thursday.
BWX Technologies, the U.S. Navy's main nuclear reactor supplier, declined 1.7% in Wednesday's stock market, but edged up less than 1% on Thursday.
Uranium miner Centrus Energy fell 8.8% Wednesday and Canada-based uranium refiner Cameco lost 4.4%. However, Centrus Energy jumped 13% Thursday and CCJ advanced 3%. Cameco owns a 49% stake in nuclear reactor builder Westinghouse, giving it SMR exposure.
S&P 500 nuclear giant Constellation Energy declined more than 3% on Thursday with Vistra falling about 0.2%.
Among other nuclear plays, Uranium Energy dropped 1.5% while Lightbridge advanced 4.2% Thursday after sinking 10.5% on Wednesday.
Energy Fuels advanced 1.2% on Wednesday, and added 2.2% on Thursday. GE Vernova fell 3.4% lower on Thursday.
These stocks have broadly soared in September's stock market action prior to Wednesday.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Oklo has a 94 Composite Rating out of a best-possible 99. The nuclear stock also has a perfect 99 Relative Strength Rating and a 46 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Get Full Access To IBD Stock Lists And Ratings
Why This IBD Tool Simplifies The Search For Top Stocks
IBD Digital: Unlock IBD's Premium Lists, Tools And Analysis Today
How To Invest: Rules For When To Buy And Sell In Bull And Bear Markets
