Why Oklo Stock Is Climbing Higher Today

After dipping lower on Monday and Tuesday, the S&P 500 shows signs of reversing course today, staying in positive territory during this morning's trading session. At the same time, advanced nuclear energy stock Oklo (NYSE: OKLO) is also benefiting from investors' enthusiasm. As of 11:32 a.m. At 3:00 ET, the S&P 500 is up 0.4%, and Oklo stock has risen 4%, retreating from its earlier gain of 9.6%.

Thanks to the company's announcement that it has signed a new binding contract regarding its Aurora powerhouse, investors are eager to click the buy button on Oklo stock today.

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Oklo continues to make progress in the Gem State

With the signing of an agreement with Oklo, Siemens Energy will initiate engineering and design activities to expedite the sourcing of components for the power conversion system of the Aurora powerhouse that Oklo is developing at the Idaho National Laboratory.

Lauding the agreement, Alex Renner, Oklo's chief product officer, commented:

"Aurora's inherent safety allows us to use proven, commercially available power systems like Siemens Energy's turbine technology. That design philosophy shortens timelines, lowers costs, and turns advanced nuclear into a deployable product. We believe this is a historic step forward for the advanced nuclear industry--a real-world purchase that demonstrates progress toward deployment and operation."

Oklo is targeting the deployment of its first Aurora powerhouse in late 2027 or early 2028.

Is it too late to add shares of Oklo to your portfolio?

Unsurprisingly, the market is driving Oklo stock higher as the company continues to make progress toward the development of the Aurora powerhouse at Idaho National Laboratory. For prospective investors, however, it's important to remember that the company has a long way to go before proving that its pursuit of advanced nuclear reactors can be a lucrative endeavor. For those seeking exposure to nuclear energy but with lower risk tolerances, a nuclear energy ETF may be a more suitable option.

Scott Levine 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.