Nuclear energy investors have one question on their minds: What the heck is going on with Oklo (OKLO -5.82%)?
The poster child of artificial intelligence energy, the driving force behind the “nuclear renaissance” (remember that?), the company challenging our conventional image of nuclear power as a sprawling industrial complex of steel and concrete, with enormous cooling towers looming ahead — oh, that Oklo? It trades at $27 a share today, down 86% from an all-time high of roughly $194.
How does Oklo fall from $194 to $27, and more importantly, should you buy?
Image source: Oklo.
Oklo at $27: How we got here
Oklo, as you might know, is trying to build a small modular reactor (called Aurora) that looks like a cross between a cathedral and an eco-cabin. “Trying” doesn’t mean it lacks the technical know-how to do it. No, instead, “trying” means making it through the lengthy, expensive process of securing regulatory approval to sell electricity from certified reactors, which has been ongoing since 2016.
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It’s no surprise that Oklo has been mired in this regulatory approval for over a decade (this is nuclear energy, after all). What is surprising is the response to nuclear that made Oklo such a hot stock.
Although Oklo went public in 2024, enthusiasm really accelerated in 2025. This was a time when powerful artificial intelligence models were emerging, and people were generally won over (at least at first) by the technology’s language fluency and rational capacities.
All of a sudden, Wall Street was giddy about nuclear energy. And why not? AI needs power, preferably clean power, and nuclear is one of the best sources of clean electricity. With backing from Sam Altman, Oklo seemed like the perfect partner for data centers in an era of increasingly powerful and energy-intensive models.
Oklo still seems like a good partner for data centers. But that future seems a lot farther away than it did last year. Building nuclear power plants, even small ones, takes time and money, and investors seem reluctant to pay a premium for profits that might not materialize for years. Meanwhile, tech companies are looking for ways to secure electricity sooner, including Alphabet‘s (GOOG -1.45%) (GOOGL -1.40%) recent 20-year agreement with Constellation Energy (CEG -0.83%) to add 890 megawatts of nuclear capacity by upgrading its reactors.
Is Oklo a buy at $27?
The sobering truth: Oklo at $27 is essentially the same as Oklo at $194.
At $194, investors were betting on a company with no regulatory approval and no Aurora powerhouse in operation. At $27, Oklo is basically in the same situation.
That’s not to say it’s not a buy. Indeed, at $27 per share, investors are certainly getting a better price. Still, the company carries a roughly $5 billion market valuation, despite generating little revenue, so I wouldn’t call Oklo a “bargain.”
Given that Oklo is probably years away from generating meaningful revenue, most investors will likely want to let this story play out before jumping on board.
