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Nuclear energy is witnessing rising demand as hyperscalers accelerate AI buildouts.
Meta recently outlined a plan to support a number of nuclear power suppliers over the next decade.
Shares of Oklo have gone parabolic over the last year.
When it comes to artificial intelligence (AI) stocks, most growth investors flock to the "Magnificent Seven" by default. Megacaps including Nvidia, Alphabet, Amazon, Apple, Microsoft, Tesla, and Meta Platforms (NASDAQ: META) have received the lion's share of attention from investors throughout the AI revolution.
But over the last year or so, AI has extended its reach beyond the technology industry. In particular, nuclear energy stocks have witnessed a high degree of enthusiasm.
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Over the 12 months, shares of modular reactor designer Oklo (NYSE: OKLO) have skyrocketed by 264%. Earlier this month, the company announced a milestone deal with Meta -- fueling Oklo's rally even further to kick-start the new year.
Let's dig into what makes nuclear energy such an important component of the AI value chain and assess if Oklo's relationship with Meta validates buying the high-flying momentum stock in 2026.
Image source: Getty Images.
For much of the AI boom, the storyline has remained relatively the same: Big tech is pouring unprecedented sums of capital into data center buildouts and chip procurement. For those paying close attention, though, the AI narrative has quietly shifted from purely a hardware and software play to one of reliable energy suppliers.
Hyperscalers have determined that traditional power sources like wind and solar may not be optimal for keeping data centers up and running around the clock. Nuclear energy is an ideal complement to alternative power sources because it is a low-cost, carbon-efficient source for data centers.
Tangentially speaking, Alphabet recently announced that it is acquiring an energy management specialist called Intersect for $4.75 billion. Against this backdrop, investors should realize that capital expenditure (capex) budgets are increasingly inclusive of both technology and clean energy solutions as the AI infrastructure era accelerates.
In early January, Meta unveiled a thorough roadmap to support nuclear energy development. Through a series of partnerships, Meta is aiming to unlock 6.6 gigawatts of clean energy by the middle of next decade.
Per the announcement, Meta is collaborating with Vistra, TerraPower, Constellation Energy, and Oklo to achieve its mission. As it relates to Oklo specifically, Meta agreed to support the company's 1.2 gigawatt buildout in Ohio.
From a macro perspective, Meta's decision to invest in nuclear power should help strengthen the broader thesis at the intersection of sustainable energy and AI development. With that said, investors need to be cautious about which opportunities earn a spot in their portfolio.
Oklo's affiliation with a high-quality company such as Meta might appear impressive on the surface, but smart investors understand that it's never a good idea to simply "buy the news."
This year, Oklo merely plans to spend some time planning its buildout in Ohio. In reality, the company's infrastructure isn't expected to come online until 2030 -- with staggered phases lasting until 2034.
In my eyes, Oklo's deal with Meta doesn't carry much weight. I see this award as more of a framework rather than something immediately transformational or accretive for the company.
For now, Oklo remains a pre-revenue, capital-intensive business with no guarantee of a commercialized product. Nevertheless, Oklo stock continues to exhibit classic character traits of a meme stock -- trading on speculation, hype, hope, and headlines.
At the end of the day, Oklo is the definition of a high-risk, high-reward investment opportunity. It is possible that the company evolves into a completely different enterprise by next decade -- disrupting industry incumbents and eventually blossoming into a leading power source for the AI ecosystem.
However, smart investors understand that the company carries outsized execution risk at this time. For these reasons, I would not encourage chasing Oklo stock at its unjustifiable premium valuation in 2026.
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Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Constellation Energy, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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