Oklo Inc. OKLO drew fresh investor attention after Bloomberg reported that the advanced nuclear developer had been selected for a Trump administration-led initiative to accelerate nuclear power deployment for artificial intelligence (AI) data centers. Another alternative-energy company, X-Energy XE, is participating alongside technology behemoths Microsoft and Nvidia in the roughly $200 million program, which reflects the urgent need for dependable electricity to support AI infrastructure. The news lifted sector sentiment, with OKLO shares rising more than 6%, X-Energy climbing more than 7% and NuScale Power SMR gaining more than 9%, despite not being part of the initiative.
The selection of Oklo and X-Energy highlights the potential role of advanced reactors in supplying the continuous electricity AI data centers require. Rapid growth in computing capacity is placing added pressure on the U.S. grid, increasing demand for dependable power sources that can operate around the clock. The initiative is expected to direct $60 million over three years to Department of Energy laboratories and institutions, including the University of Texas at Austin, to support research and accelerate reactor development. Although NuScale Power is outside the program, its shares benefited from expectations that stronger federal support could improve prospects across the advanced nuclear industry.
The market reaction suggests that investors view the initiative as a broader endorsement of advanced nuclear technology, not merely a direct opportunity for OKLO and X-Energy. It also signals growing policy recognition that AI expansion will depend heavily on access to reliable electricity. NuScale Power’s rally, despite its exclusion, shows that optimism is spreading to other reactor developers as investors anticipate wider benefits from faster research, licensing and infrastructure planning. For OKLO, the initiative strengthens its position within the emerging connection between nuclear power and AI data-center growth.
The Zacks Rundown on OKLO
Shares of Oklo have lost around 31% over the past year, underperforming the industry's growth.
OKLO currently has an average brokerage recommendation (ABR) of 2.04 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms.
See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past 90 days.
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).