Is Oklo a Millionaire-Maker Stock?

2025 has been a bonanza for speculative technology companies as hype and investment capital flows from generative AI to other potentially synergistic opportunities. With shares up by over 900% over the last 12 months, Oklo (NYSE: OKLO) is a clear beneficiary of this trend.

But does Oklo have what it takes to sustain its valuation after the hype fades? Let's dig deeper into the pros and cons of the stock to decide if this nuclear energy startup still has millionaire-maker potential.

Image source: Getty Images.

The clean energy conundrum

After over a decade of stagnation, U.S. electricity consumption is rising because of soaring commercial demand. And a lot of this can be credited to generative AI. According to analysts at Goldman Sachs, a query on a large language model (LLM) like ChatGPT consumes a whopping 10 times more energy than a Google search. And this doesn't even account for the vast resources needed to train these complex algorithms.

The researchers expect global data center energy consumption to jump 160% by 2030, while their carbon dioxide emissions more than double. This pollution obviously poses a problem for governments and tech companies that have spent decades trying to greenwash their public images. Nuclear technology offers a solution by providing steady, carbon-free energy capable of sustaining rapidly rising data center demand.

Oklo aims to take things a step further with its next-generation nuclear fast reactors, designed to be capable of burning fuels that others can't, such as nuclear waste. And in September, the company announced a $1.68 billion advanced fuel recycling facility designed to recycle spent nuclear fuels into usable energy. It is also exploring a partnership with the local utility to buy its used fuel and potentially sell power back -- an early sign of how Oklo's business model could scale up over the coming years.

While relying on spent nuclear fuel might seem like an inherently limited supply chain, that isn't necessarily the case. According to Oklo, there is a whopping 94,000 metric tons of nuclear waste stored at power plants around the U.S. And the company believes it can extract the equivalent of 1.3 trillion barrels of oil (five times Saudi reserves) from this waste.

In the right place at the right time

From a bird's-eye view, Oklo looks like a clear winner. It's turning waste into usable energy in the face of an energy sector poised to expand dramatically over the coming years. Furthermore, it enjoys high-profile backers like OpenAI founder Sam Altman, who formerly served as chairman of the board before stepping down because of potential conflicts of interest related to his role with his other companies.

Investors should also expect Oklo to enjoy support from the U.S. government, which has an interest in promoting strategic technologies amid its geopolitical competition with China.

The company is moving closer to a slew of potential deals with government organizations, such as the U.S. Air Force, where it has received a notice to award a power purchase agreement for a reactor. The Trump administration has signed several executive orders aiming to support the nuclear industry by fast-tracking regulatory approvals.

Is Oklo a millionaire-maker stock?

With shares up by over 900% since this time last year, Oklo has likely already made millionaires out of its early backers. That said, the massive rally complicates things for potential new shareholders. With a market cap of $19 billion, Oklo is no longer a small company. And it will have to prove itself worthy of such a high valuation. That's easier said than done.

In the second quarter, Oklo generated no revenue and burned through roughly $28 million in operations. While Oklo's technology looks exciting over the long term, the fundamentals aren't very appealing right now.

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.