Core Viewpoint - U.S. nuclear stocks continued to decline, with significant drops observed in several companies [1] Company Performance - Oklo Inc (OKLO.US) experienced a decline of over 11% [1] - Centrus Energy (LEU.US) also fell by more than 11% [1] - NANO Nuclear Energy (NNE.US) saw a decrease of over 8% [1] - NuScale Power (SMR.US) dropped by more than 5% [1]

Core Viewpoint - The article discusses the challenges and skepticism surrounding Ollo, a nuclear startup valued at $20 billion but currently without revenue, highlighting concerns about its viability and scalability in the nuclear power sector [1][4][5]. Group 1: Company Analysis - Ollo is described as a nuclear startup with significant backing, including involvement from notable figures, yet it faces criticism for lacking revenue and realistic operational timelines [1][4]. - The company has seen a dramatic stock price increase of 500%, but there are concerns about its short interest of approximately 13% [4]. - The potential for Ollo to achieve non-commercial operations in the next six to seven years is mentioned, but doubts remain about its ability to scale effectively [4][5]. Group 2: Industry Context - GE Vernova is identified as a leading player in the nuclear power industry, emphasizing that many claims about new nuclear technologies may be overly optimistic, with operational timelines pushed to the late 2020s or beyond [2][5]. - The discussion highlights the importance of scale in nuclear power, with references to established projects like Diablo, contrasting them with Ollo's current capabilities [5]. - The sentiment in the industry suggests a cautious approach to investing in companies without revenue, with a recommendation to sell stocks of firms that are not yet commercially viable [6][7].

Core Insights - 2025 has seen a surge in speculative technology companies, particularly in the realm of generative AI, with Oklo (NYSE: OKLO) experiencing a share price increase of over 900% in the past year, raising questions about its ability to maintain this valuation post-hype [1] Industry Overview - U.S. electricity consumption is on the rise after a decade of stagnation, largely driven by increased commercial demand attributed to generative AI, with large language models consuming significantly more energy than traditional searches [3] - Global data center energy consumption is projected to increase by 160% by 2030, with carbon dioxide emissions expected to more than double, presenting challenges for governments and tech companies focused on sustainability [4] Company Analysis - Oklo is developing next-generation nuclear fast reactors capable of utilizing fuels that are typically not used, including nuclear waste, and has announced a $1.68 billion advanced fuel recycling facility to convert spent nuclear fuels into usable energy [5] - The company claims there are 94,000 metric tons of nuclear waste stored in U.S. power plants, which could potentially yield the equivalent of 1.3 trillion barrels of oil, significantly more than Saudi reserves [6] - Despite its innovative approach and high-profile backing, Oklo currently generates no revenue and is operating at a loss, raising concerns about its long-term viability [8]

Group 1 - Oklo Inc. is an experimental nuclear power company with a market capitalization of $23 billion, yet it has not generated any revenue and is expected to burn nearly $100 million in cash per year according to consensus estimates [1] - The stock is considered highly speculative, suitable for discretionary portfolios but not for retirement portfolios, indicating a cautionary stance on its rapid price increase [1] - The company develops advanced fission power plants aimed at delivering clean and reliable energy while recycling nuclear waste into usable reactor fuel [2] Group 2 - There are other AI stocks that are perceived to offer greater upside potential and carry less downside risk compared to Oklo, suggesting a competitive landscape in investment opportunities [3]

Policy Shift - The U.S. is opening its Cold War-era stockpile of weapons-grade plutonium to private nuclear energy companies, with the Department of Energy (DOE) accepting applications for approximately 20 metric tons of this material [2][8] - This initiative aims to accelerate the development of advanced nuclear reactors and enhance energy security, stemming from President Trump's May 2025 executive order [2][8] Industry Impact - The program's primary goal is to provide a domestic fuel source for advanced reactor designs, reducing reliance on foreign uranium, especially from Russia, and addressing the increasing electricity demand from sectors like AI data centers [3][8] - Companies such as Oklo Inc. and TerraPower are expected to benefit, with Oklo developing advanced fission power plants and TerraPower working on the Natrium reactor [4][8] Economic Considerations - While the plutonium will be provided at minimal or no cost, participating companies will bear all associated expenses, including transportation, design, and construction of facilities, which could pose significant financial challenges [4][8] - Concerns have been raised regarding the economic viability of processing plutonium for fuel, with some analyses indicating it may be more expensive than current disposal methods [5][8] Criticism and Concerns - The plan has faced criticism from non-proliferation experts and lawmakers, who warn about the risks of nuclear proliferation and the potential misuse of accessible weapons-grade material [5][8] - The technology for utilizing this specific plutonium in advanced reactor designs remains unproven and unlicensed, raising further questions about the initiative's feasibility [5][8] Strategic Shift - This policy marks a significant departure from the U.S.'s historical focus on the dilution and disposal of surplus plutonium, emphasizing a renewed commitment to domestic nuclear energy production and innovation [6][8] - Potential investment opportunities may arise in reprocessing technology and advanced reactor construction, with companies like Cameco Corporation, Uranium Energy Corp, and NuScale Power likely to see indirect benefits from a revitalized domestic nuclear sector [6][8]

Group 1 - Stocks with negative EPS have significantly outperformed those with positive earnings recently, with unprofitable firms leading gains in broader indexes like the Russell 2000, where approximately 40% of companies reported zero or negative earnings [1][2] - The market is experiencing a unique condition where speculative fervor and optimism towards innovation and growth potential are prioritized over short-term profitability, reminiscent of late-cycle rallies during the dotcom bubble [2][4] - Retail investors are increasingly attracted to companies with negative EPS, particularly those recognized for their disruptive technologies, indicating a broad market enthusiasm for speculative growth over immediate profits [3][4] Group 2 - Plug Power, Inc. has reported negative earnings while investing heavily in infrastructure, with its shares gaining 300% over the past six months [4] - Oklo, Inc., a nuclear startup facing early operational losses, has seen its shares rise 600% since April, driven by the demand for power from the AI revolution [4] - Beyond Meat, Inc., known for its plant-based foods, has experienced a stock increase of over 170% in the last two days despite ongoing losses [4] - Rigetti Computing, Inc., a quantum computing company with no profits, has gained 425% in the past six months [4]

Core Insights - Oklo Inc. has entered a significant partnership with newcleo to establish advanced nuclear fuel factories in the U.S., with newcleo committing $2 billion to the initiative [1][8] - The collaboration aims to enhance the reliability of America's nuclear fuel supply and aligns with U.S. government objectives to increase nuclear power production [2][8] - This partnership positions Oklo as a key player in the future of nuclear energy in the U.S., focusing on a closed-loop fuel cycle to enhance energy independence [3] Investment and Financial Implications - The project will create facilities for producing and reusing advanced nuclear fuel, contributing to a more secure energy supply [2] - Oklo's stock has seen a remarkable increase of nearly 700% over the past six months, significantly outperforming the industry [6] Strategic Partnerships - Oklo has partnered with Vertiv Holdings to improve the efficiency of new facilities by utilizing steam and electricity from Oklo's nuclear plants [4] - A partnership with Liberty Energy will provide customers with a comprehensive energy roadmap, initially using natural gas and transitioning to nuclear power for a zero-carbon future [5] Market Position and Recommendations - Oklo currently holds an average brokerage recommendation of 2.28, indicating a generally favorable outlook among analysts [9]

Core Insights - Oklo Inc. (NYSE:OKLO) experienced an 11.03% increase in share price from October 10 to October 17, 2025, making it one of the top-performing energy stocks during that week [1]. Company Developments - Oklo Inc. has signed an agreement with France-based Newcleo to develop advanced fuel fabrication and manufacturing infrastructure in the United States, with Newcleo planning to invest up to $2 billion [3]. - The investment is subject to customary approvals, and Sweden's nuclear energy company Blykalla is also considering co-investing and procuring fuel-related services from the projects [3]. Government Support - Doug Burgum, Secretary of the Interior, highlighted the agreement as a significant step in advancing the American Energy Dominance Agenda, emphasizing the commitment to enhancing energy security and creating American jobs [4].

Industry Overview - The small modular nuclear reactor (SMR) industry is experiencing significant growth, with companies like Oklo and Nuscale Power seeing their stock values surge, with Oklo's shares increasing by over 700% since April [1] - Nuscale Power's valuation has nearly quadrupled in the same timeframe, indicating a broader trend within the industry [1] Technology Potential - SMRs are considered a viable solution for energy production, capable of being deployed in remote locations and providing affordable power with minimal carbon emissions [2] - These reactors are less prone to generation intermittency compared to renewable energy sources like wind and solar [2] Company Developments - Oklo and Nuscale claim they are close to constructing the first commercial SMRs, with Nuscale already certified by the U.S. Nuclear Regulatory Council and Oklo in the application process [3] - Successful implementation of SMRs could transform the global energy landscape by offering low-cost, low-carbon fuel options [3] Challenges and Concerns - Despite the optimistic projections, there are significant uncertainties regarding the feasibility of the promises made by these companies, as neither has secured existing customer orders [4] - Historical challenges in the industry have primarily stemmed from cost overruns rather than technological failures, raising questions about the sustainability of the current hype [5] Market Sentiment - Investor enthusiasm for small nuclear reactors is high, but caution is advised due to past failures and cost issues [7]

Core Insights - The ongoing AI boom is driving demand for affordable and reliable energy, benefiting companies like NuScale Power and Oklo [2] - Oklo has significantly outperformed NuScale in stock market gains, with a 1,370% increase compared to NuScale's 290% and the S&P 500's 15% [3] - Investors are focused on the future performance of both companies, particularly their ability to generate consistent revenue and profits [4] NuScale Power Overview - For the 12 months ending June 30, 2025, NuScale reported $56.1 million in revenue and $124 million in net losses, missing revenue estimates in 10 of the past 12 quarters [5] - Analysts project NuScale's revenue to grow from $47 million in 2025 to $152 million in 2026, reaching $5.1 billion by 2034, with a current price-to-sales (P/S) ratio of 200 [6] - NuScale is expected to incur three more years of losses before achieving profitability in 2030, with projected earnings per share (EPS) of $0.48 [7] Oklo Overview - Oklo has emerged as a market favorite with a 12-month gain exceeding 1,000%, while NuScale is also nearing its all-time high as it works on its first small reactor in Idaho [8]