Oklo Inc. (NYSE:OKLO) is one of the stocks Jim Cramer discussed, along with market shortages. During the episode, a caller asked whether the stock is a buy, sell, or hold. Cramer replied: Okay, Oklo, I’ve been saying sell it… It’s been knocked down pretty bad. I think it, there’s always these yahoos who want to come in, it’s up 22% for the year, who say, well, listen, it’s going to be the next greatest thing ever, and their technology’s unbelievable. This is nuclear power, and when we talk about nuclear p ...

Group 1 - President Trump emphasized the importance of nuclear energy at the World Economic Forum, announcing an executive order to approve new nuclear reactors and aiming to expand U.S. nuclear capacity to 400 gigawatts by 2050 [2][3] - Shares of Oklo, NuScale Power, and Nano Nuclear Energy experienced gains following Trump's announcement, although they remain approximately 50% down from their 52-week highs due to broader market corrections [3][6] - The Department of Energy allocated $2.7 billion for uranium enrichment, aiming to reduce foreign dependence and support the rising energy demand from AI data centers, which could benefit advanced nuclear developers [4] Group 2 - Oklo is focusing on microreactors, specifically its Aurora design, and is working towards operational readiness for its first plant by 2027-2028, with a significant deal in place with Meta Platforms for a 1.2-GW nuclear campus in Ohio [5][6] - Despite being pre-revenue, Oklo has received a buy rating from Bank of America with a target price of $127, indicating positive market sentiment towards the company [6] - NuScale forecasts a loss of $0.92 per share for 2026, highlighting the financial challenges faced by these companies as they navigate the nuclear energy landscape [6]

Core Viewpoint - Oklo's stock price increased nearly 4% to $94.38 following an upgrade from Bank of America, which raised the target price from $111 to $127 and upgraded the rating from "Neutral" to "Buy" due to a binding agreement with Meta to jointly develop a phased 1.2 GW advanced nuclear energy facility [1] Company Summary - Oklo is recognized for its business model, particularly as a leading player in the market for small modular reactors (SMRs), which are expected to have significant leverage in meeting data center demand [1]

Group 1 - Bank of America upgraded its rating on nuclear startup Oklo (OKLO.US) from "neutral" to "buy," raising the target price from $111 to $127 due to a binding agreement with Meta (META.US) to co-develop a phased 1.2 GW advanced nuclear power plant [1] - The agreement includes customer prepayments to fund early development before the final power purchase agreement (PPA) is signed, providing tangible evidence of execution and commitment from partners [1] - Analysts believe that investors are increasingly seeking concrete evidence of advanced nuclear moving from concept to execution, and the agreement with Meta provides such proof [1] Group 2 - Recent news regarding data center operator Switch's new geothermal supply has somewhat overshadowed the positive factors for Oklo [2] - The geothermal PPA is relatively small and aligns with Switch's multi-technology strategy, serving as incremental support rather than replacing Oklo's potential 12 GW project under the memorandum of understanding (MoU) with Switch [2] - The analyst noted that Switch's significant share in the announced approximately 14 GW project pipeline indicates that the geothermal supply is a minor addition compared to the larger load demands of hundreds of megawatts to several gigawatts [2]

Group 1 - Oil stocks generally rose, with CNOOC (02883) up 4.32%, PetroChina (00857) up 3.33%, CNOOC (00883) up 2.98%, and Sinopec (00386) up 3.01%. International oil prices saw a slight increase, with WTI crude oil futures for February closing at $60.62 per barrel, up 0.43%, and Brent crude oil futures for March at $65.24 per barrel, up 0.49% [1] - CATL (03750) fell over 4%, down 4.4% as of the report. A report from Citi raised concerns about CATL's growth prospects due to slowing EV sales in China, rising lithium prices, and reduced export VAT rebates [1] - Kintor Pharmaceutical (02171) rose nearly 4% after announcing a clinical collaboration with Dispatch Bio to initiate a Phase I clinical trial in China by 2026 for a treatment method targeting solid tumors [1] Group 2 - Guoxia Technology (02655) surged over 7% following a strategic cooperation agreement with Shuneng Electric to enhance collaboration in the energy storage sector [2] - Kingsoft Biotech (01548) dropped over 6% after its affiliate Legend Biotech's stock fell more than 11%. Kingsoft reported that Legend's CARVYKTI had a net sales of approximately $555 million for Q4 [2] - Hong Kong real estate stocks saw a general rise, with Hysan Development (00014) up 5.17%, Sun Hung Kai Properties (00016) up 3.36%, and Wharf Real Estate (01997) up 4.02%. A report from Citi indicated a recovery in Hong Kong property prices, predicting a continued upward trend, albeit at a moderate pace due to tempered interest rate cut expectations [2] Group 3 - Baidu Group (09888) rose nearly 5%, with a cumulative increase of over 40% in the past two months. The company launched the official version of its Wenxin large model 5.0, featuring 2.4 trillion parameters [3] - Pacific Basin Shipping (02343) increased over 9%, reaching a new high of HKD 2.96, benefiting from a rise in the Baltic Dry Index, which increased by 74 points or 4.3% to 1803 points [3] - GDS Holdings (09698) rose nearly 3% after announcing the sale of shares in DayOne for $385 million, recovering approximately 95% of its investment principal with a return rate close to 6.5 times [4] Group 4 - The US stock market saw an expansion in gains, with the Nasdaq up 1%. Notable tech stocks like Intel (INTC.US) rose 11.72%, reaching a market cap of over $250 billion, the highest in four years [5] - The storage sector continued to strengthen, with Micron Technology (MU.US) up 6.61% and Western Digital (WDC.US) up 8.49%. Counterpoint Research indicated that the storage market has entered a "super bull market" phase, surpassing previous highs due to increased demand from AI and server capacity [5] - The Nasdaq Golden Dragon China Index surged 2%, with popular Chinese stocks like Bilibili (BILI.US) up 5.65% and Baidu (BIDU.US) up 8.17% [6]

Core Viewpoint - Oklo's stock has surged following a deal with Meta for power pre-purchase, indicating strong market interest and confidence in the company's future projects [1][3]. Group 1: Company Developments - Oklo has entered a binding agreement with Meta to develop a phased ~1.2 GW advanced nuclear campus aimed at powering Meta's AI data centers, which is seen as a significant step towards execution and commitment from a major counterparty [3][4]. - The company has a pipeline of approximately 14 gigawatts of nuclear projects, which positions it well for future growth, although profits from these projects are not expected for several years [3]. Group 2: Financial Projections - The deal with Meta is projected to generate around $1.3 billion in annual revenue for Oklo at current electricity rates in Ohio, but this revenue will not materialize until the plants are operational in 2030, with full capacity and revenue expected by 2034 [5]. - Oklo currently has $920 million in cash, which should allow it to sustain operations until the plants are built and generating revenue [6]. Group 3: Analyst Recommendations - Bank of America analyst Dimple Gosai has upgraded Oklo's stock to a buy rating, citing the presale agreement with Meta as a key indicator of confidence in the company's future [7]. - Despite the positive outlook from Bank of America, other analysts have identified alternative stocks that they believe may offer better returns than Oklo at this time [8].

Upgrades Summary - Susquehanna upgraded Arm (ARM) to Positive from Neutral with an unchanged price target of $150, citing recent downgrades from competitors and significant underperformance as an "excellent setup" for investors [2] - BNP Paribas upgraded Seagate (STX) to Outperform from Neutral with a price target of $380, expressing greater conviction that "robust" data center storage demand could lead to a longer upcycle than initially expected [2] - Raymond James upgraded Ulta Beauty (ULTA) to Strong Buy from Outperform with a price target increase to $790 from $605, anticipating "outsized growth" in fiscal 2026 following heavy investments [2] - Northcoast upgraded Advance Auto Parts (AAP) to Buy from Neutral with a price target of $55, highlighting "healthy" demand trends and performance improvements into 2026, along with a strategic decision to sell Worldpac and focus on core retail [2] - BofA upgraded Oklo (OKLO) to Buy from Neutral with a price target raised to $127 from $111, following a binding agreement with Meta (META) to develop a phased 1.2 GW advanced nuclear campus [2]

Core Viewpoint - Nuclear stocks experienced a significant pre-market surge following President Trump's announcement of a strong push for nuclear energy development in the U.S. and the signing of an executive order to approve the construction of multiple new nuclear plants [1] Company Performance - Oklo Inc (OKLO.US) saw an increase of over 7.6% [1] - NuScale Power (SMR.US) rose by more than 5.8% [1] - Centrus Energy (LEU.US) gained over 4% [1] - Cameco (CCJ.US) increased by more than 3.6% [1]

Core Viewpoint - Nuclear power stocks experienced a significant pre-market surge following President Trump's announcement of a strong push for nuclear energy development in the U.S. and the signing of an executive order to approve the construction of multiple new nuclear plants [1] Company Performance - Oklo Inc (OKLO.US) saw an increase of over 7.6% [1] - NuScale Power (SMR.US) rose by more than 5.8% [1] - Centrus Energy (LEU.US) gained over 4% [1] - Cameco (CCJ.US) increased by more than 3.6% [1]

Core Insights - Oklo and Meta have formed a partnership to support the development of 1.2 gigawatts of nuclear power in Ohio, highlighting the growing intersection of AI and sustainable energy [1][8] - Over the past year, Oklo's stock has surged by 264%, driven by increasing enthusiasm for nuclear energy stocks amid the AI boom [2] - The AI narrative is shifting towards the need for reliable energy sources, with nuclear power emerging as a key component for data centers [4][5] Industry Trends - Traditional power sources like wind and solar are deemed insufficient for the continuous operation of data centers, making nuclear energy a favorable alternative due to its low-cost and carbon-efficient nature [5] - Major tech companies, including Alphabet, are expanding their capital expenditure budgets to include clean energy solutions alongside technology investments, as seen in Alphabet's acquisition of Intersect for $4.75 billion [6] Company Developments - Meta's roadmap aims to unlock 6.6 gigawatts of clean energy by the middle of the next decade through partnerships with various energy companies, including Oklo [7][8] - Oklo's infrastructure buildout is expected to take place in phases, with the first phase not coming online until 2030 and completion projected by 2034 [9] Investment Considerations - While Oklo's partnership with Meta may seem promising, it is essential to approach the stock with caution due to its pre-revenue status and high capital intensity [10][11] - The current valuation of Oklo's stock is considered unjustifiable, and investors are advised to be wary of speculative trading behavior associated with the stock [11]