This nuclear stock looks like a big winner as Trump pushes for renewable AI power

Oklo (OKLO) shares surged 29% on Wednesday following the announcement of a long-term power purchase agreement with the Department of Defense to supply green energy to Eielson Air Force Base in Alaska. Analysts view Oklo as a primary beneficiary of the Trump administration's initiative to bolster the nuclear energy sector in support of the AI-data-center boom, with Wedbush raising its price target to $75. The stock, which climbed 122% in May, has garnered eight buy ratings, reflecting strong Wall Street confidence in Oklo's position within the nuclear energy renaissance.

Analysis

Oklo Inc. (OKLO) experienced a significant 29% stock increase following the announcement it will secure a Department of Defense contract to supply energy to the Eielson Air Force Base in Alaska under a long-term power purchase agreement. This development contributes to a substantial run-up in the stock, which already climbed 122% in May, partially driven by a presidential executive order aimed at boosting the nuclear energy industry by reducing regulation. Analysts view Oklo as a "clear leader on the nuclear front" and a prime beneficiary of a potential push to use nuclear energy to meet the demands of the AI data center boom. Wedbush Securities has raised its price target for Oklo to $75 per share, implying approximately 10% upside from current levels, citing the executive order as a "significant tailwind" and emphasizing the U.S. government's interest in maintaining a lead over China in the "Global AI Arms race." Supporting this outlook, William Blair initiated coverage with an Outperform rating, forecasting Small Modular Reactors (SMRs) to become major contributors to the nuclear renaissance, with a potential path to 50 GW by 2040, and positioning Oklo as best suited for market adoption. The stock currently holds eight buy ratings and two neutral calls from Wall Street analysts, reflecting strong positive sentiment.

Key Decisions for Investors

• Given Oklo's pivotal Department of Defense contract, its strong alignment with the burgeoning AI energy demand, and bullish analyst sentiment including a $75 price target from Wedbush, investors may consider the company's enhanced growth prospects.
• The stock's recent 122% surge in May followed by a 29% rise indicates strong positive momentum, though investors should note the ~10% implied upside to Wedbush's current target and carefully assess risk-reward at current valuation levels.
• Long-term investors should monitor Oklo's execution of current contracts, its ability to secure further agreements within the SMR market projected by William Blair to significantly expand by 2040, and the evolving regulatory and political landscape supporting nuclear energy development.