Should You Buy Oklo While It's Below $110?

Nuclear power is making a comeback. In recent years, numerous countries have come together to sign the Declaration to Triple Nuclear Energy by 2050. This initiative has also gained the support of several financial institutions. Meanwhile, in the U.S., rising electricity demands are making nuclear energy a top priority.

Nuclear power is appealing because it's scalable, reliable, always-on, and zero-carbon. The nuclear buildout had stalled for several years, but things are turning around. Under U.S. President Donald Trump, the U.S. is aiming to "unleash American energy," and investing in nuclear energy is part of this plan.

This is where Oklo (NYSE: OKLO) seeks its opportunity. The nuclear power start-up has the backing of OpenAI CEO Sam Altman. Not only that, but the current U.S. Secretary of Energy, Chris Wright, is a former Oklo board member.

Oklo stock has surged, up 347% over the past year. But more recently, the stock has faced some selling pressure and is 52% below its all-time high from one month ago. With the stock well below $110 per share, is now a good time to buy? Let's dive into the business and its outlook to find out.

Oklo is developing advanced nuclear technology

Oklo develops advanced fission power plants known as Aurora powerhouses. It does not currently have a commercially operating business. Instead, it is working on research and development, obtaining Nuclear Regulatory Commission certifications, and securing more customers for its next-generation nuclear plant technology.

Its Aurora powerhouses utilize metal-fueled fast-reactor technology based on the Experimental Breeder Reactor-II, which operated for 30 years at the Argonne National Laboratory until its shutdown in 1994.

Its powerhouses are initially designed to produce 15 MWe and 75 MWe, with plans to expand to 100 MWe and beyond. These reactors can run on recycled fuel, with the Aurora powerhouse designed to operate for over 10 years before refueling.

Oklo's long-term growth opportunity stems from surging power demand, particularly in AI, data infrastructure, electrification, and decarbonization, which it can meet with its modular, deployable nuclear plants. As Oklo scales, it hopes to capture a significant market share in the promising advanced reactor industry.

It is working closely with regulators to get the necessary approvals

Oklo was selected by the Department of Energy (DOE) for an advanced nuclear fuel line pilot program, which is designed to accelerate permitting, construction, and operations, creating a fast-track approach to licensing. Under the program, Oklo will build and operate three fuel-fabrication facilities to ensure a domestic supply of advanced nuclear fuel.

These projects are intended to enable Oklo to build and operate facilities that directly support its powerhouse deployments and complement existing work at its Advanced Fuel Center and the Aurora INL fuel fabrication facility.

Image source: Getty Images.

The goal of the Fuel Line Pilot Program is to create pathways for the faster deployment of advanced nuclear technology, streamline reviews, and leverage private investment alongside federal oversight. This initiative helps Oklo secure fuel for early powerhouses while strengthening U.S. manufacturing and fuel independence.

The U.S. NRC accepted Oklo's Principal Design Criteria (PDC) topical report for accelerated review. Once approved (expected for early 2026), this report can be referenced in future applications, reducing the need to re-review established material.

Watch its cash needs

It will take time for Oklo's Aurora powerhouse to come online. In September, it held a groundbreaking ceremony on the Aurora-Idaho National Laboratory (INL) site, marking the start of construction work for its first Aurora reactor. It expects its first commercial powerhouse to come online in 2028.

To fund its growth during this early, non-profitable stage, Oklo needs capital. Last month, it filed a $3.5 billion mixed securities shelf offering. A mixed shelf offering is a flexible SEC filing that lets a company issue different types of securities, such as common stock, preferred stock, debt, or warrants, up to a pre-approved total amount over time. This means Oklo isn't issuing shares right away, but it does give it the option to raise capital quickly when needed.

It will take significant capital to finance its capital-intensive own-and-operate model. If Oklo needs to continue tapping equity or debt markets, it could significantly dilute shareholders along the way.

Is Oklo stock a buy today?

Oklo has several hurdles ahead of it before its powerhouses become operational. It must still navigate regulatory requirements, build its first powerhouse, and secure firm customer agreements. If it can accomplish all of this and streamline the development of future powerhouses, Oklo could be a force in the nuclear power space.

That said, the stock is still up significantly in the past year and remains pre-revenue and pre-commercial operations, with positive cash flow several years away. Analysts don't expect it to generate meaningful revenue until 2028, when its first powerhouse is slated to open. Given that it's in the early stages of its build-out, I think investors are best off avoiding this stock for now.

Courtney Carlsen 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.