Jim Cramer Highlights Risks Behind Oklo's Nuclear Plans

Oklo Inc. (NYSE:OKLO) is one of the stocks to watch as Jim Cramer looked at market rationality. Cramer said that the stock’s significant gains are because of a “pro-nuke” administration. He said:

“Oklo wants to build a small nuclear reactor that runs on nuclear waste. Love it. We need nuclear power, but it may take years to build, make that years and years, even if it’s a small-scale production. The stock’s up 247% year to date because this administration’s even more pro-nuke than the previous one. But man, it’s really hard to construct a nuclear reactor. The process takes forever, and the cost overruns are often endless. I’m not so sure why Oklo would be any different. Irrational.”

Oklo Inc. (NYSE:OKLO) develops advanced fission power plants to deliver clean and affordable energy at scale. In addition, the company focuses on nuclear fuel recycling technology that transforms waste into usable reactor fuel. Cramer mentioned the stock in a July episode and said:

“Until this market, I found it very hard to recommend anything… because historically, parabolic moves tend to explode in your face. But you know what? I violated my rule for this market simply because the moves are too big and the opportunities too frequent to pass on all of them. I don’t want you to miss making some big money because of a view that might no longer be relevant. Let’s take some stocks.

Take Oklo, okay. You might have seen them on TV today. Here’s a company that I’m asked about every couple of weeks, one that’s working on new nuclear technology. I felt that the stock’s parabolic run from $21 to $31 was just too steep for me, even as I’m a huge believer in nuclear. Finally, I switched my view and told people to buy it regardless of the parabola because it has just so much going for it. Today, Oklo announced an integrated power solution for data centers, might be worth billions to shareholders. It’s a turnkey solution no one else has. The stock has now doubled since I waived my parabola ban, doubled.”

While we acknowledge the potential of OKLO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.