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Why Oklo Stock Jumped 96% in January
OKLOOklo(OKLO) The Motley Fool·2025-02-05 21:56

Core Insights - Oklo's shares increased by 96% last month, driven by significant news events related to AI and nuclear energy [4] - The Stargate Project announcement, which involves at least 100billioninAIdatacenterinvestments,hasheightenedinterestinnuclearenergyasapowersourceforthesefacilities[2]−Oklosignedamemorandumofunderstandingforafuelfabricationfacility,contributingtoitsstockrally[3][5]CompanyDevelopments−Okloispartofagrowingsectorfocusedonsmallmodularreactors(SMRs),alongsidecompanieslikeNuScalePowerandNanoNuclearEnergy,indicatingstronginvestorinterest[5]−ThestockbegantoriseonJanuary17afterapartnershipwithRPowertoenhancepoweravailabilityfordatacenters[5]−FollowingatemporarydeclineduetoDeepSeeknews,Oklo′sstockreboundedafterreceivingabuyratingfromCraig−Hallum,whichprojectedapotentialpriceof100 billion in AI data center investments, has heightened interest in nuclear energy as a power source for these facilities [2] - Oklo signed a memorandum of understanding for a fuel fabrication facility, contributing to its stock rally [3][5] Company Developments - Oklo is part of a growing sector focused on small modular reactors (SMRs), alongside companies like NuScale Power and Nano Nuclear Energy, indicating strong investor interest [5] - The stock began to rise on January 17 after a partnership with RPower to enhance power availability for data centers [5] - Following a temporary decline due to DeepSeek news, Oklo's stock rebounded after receiving a buy rating from Craig-Hallum, which projected a potential price of 80 per share [7] Industry Context - The AI sector's growth is expected to influence Oklo's stock performance, as seen with Alphabet's increased capital expenditures for AI [8] - Oklo plans to deploy its first Aurora powerhouse by 2027, which could further impact investor sentiment and stock performance [9]