Will Trump's Push to Quadruple US Nuclear Capacity Benefit OKLO Stock?

Oklo Inc. (OKLO) shares have surged 30.3% since May 23 following President Trump's executive orders aimed at quadrupling U.S. nuclear capacity by 2050, outpacing its sector and the S&P 500; the company anticipates its Aurora reactor licensing process may be expedited as a result, with analysts projecting a potential 17.8% upside. Other nuclear stocks, such as BWX Technologies (BWXT) and NuScale Power Corporation (SMR), have also seen gains of 15.5% and 28.4% respectively since May 23. However, Oklo's 2025 and 2026 EPS estimates have declined over the past 60 days, and the company's P/B ratio of 32.90X is a premium to the industry average of 5.13X.

Analysis

Executive orders by U.S. President Donald Trump aimed at quadrupling U.S. nuclear power generation capacity to 400 GW by 2050 from approximately 100 GW in 2024 have catalyzed significant investor interest in Oklo Inc. (OKLO). The company's stock surged 30.3% since May 23, markedly outperforming its sector's 7.6% return and the S&P 500's 3.1% rise. Oklo's management, including CEO Jacob DeWitte, views these orders as pivotal for accelerating advanced nuclear deployment and modernizing licensing, potentially expediting the U.S. Nuclear Regulatory Commission (NRC) licensing for its Aurora powerhouse and fast-tracking commercial rollout. Analysts' high-price target for OKLO suggests a 17.8% potential upside from its last closed price. This positive sentiment has also benefited other nuclear stocks like BWX Technologies (BWXT) and NuScale Power Corporation (SMR), which experienced stock gains of 15.5% and 28.4% respectively since May 23; the article states BWXT secured historic manufacturing contracts in January 2025 and NuScale received final clearance in May 2025 for an output upgrade. However, a degree of caution for OKLO is warranted, as its consensus EPS estimates for 2025 and 2026 have declined over the past 60 days. Furthermore, OKLO trades at a demanding trailing 12-month price-to-book (P/B) multiple of 32.90X, substantially above the industry average of 5.13X, and currently holds a Zacks Rank #3 (Hold).

Key Decisions for Investors

• Investors should acknowledge the significant positive momentum for OKLO, driven by favorable U.S. nuclear policy, but balance this with caution due to its declining EPS estimates for 2025-2026 and a high price-to-book ratio of 32.90X.
• Careful monitoring of OKLO's Aurora powerhouse licensing progress with the U.S. Nuclear Regulatory Commission is crucial, as any expedition could significantly fast-track its commercial deployment and potentially support its current valuation.
• Consider the broader nuclear sector's tailwinds and evaluate relative opportunities among peers like BWX Technologies and NuScale Power Corporation, which are also poised to benefit from the expansionary nuclear policies and have reported positive individual developments.