Oklo Inc. OKLO recently signed a Memorandum of Understanding (“MOU”) with Lightbridge Corporation to explore co-locating a Lightbridge Commercial-scale Fuel Fabrication Facility at Oklo’s proposed site. This collaboration will enhance Oklo’s fuel recycling capabilities, streamline supply-chain efficiencies and support its mission to deliver cost-effective, carbon-free energy. 

By working with Lightbridge, Oklo will gain access to cutting-edge fuel technologies, advancing innovation in nuclear fuel development and recycling. This partnership reinforces Oklo’s commitment to provide its customers with cleaner, more sustainable energy while strengthening its market position in advanced nuclear solutions.

With the rapidly increasing worldwide adoption of clean energy, such a strategically prudent partnership signed by Oklo might attract investors, especially those interested in renewable energy stocks, to add this stock to their portfolio. However, before making any hasty decision, let’s take a closer look at how the stock has performed over the past year at the bourse, what its growth prospects are as well as risks (if any) to investing in the same. This will help investors make a more informed decision.

OKLO Stock Outperforms Industry, Sector & S&P500

Shares of Oklo have surged an impressive 331.6% over the past year, outperforming the Zacks Alternative-Energy industry’s return of 73.3% as well as the broader Zacks Oils-Energy sector’s growth of 6.7%. It has also outpaced the S&P 500’s surge of 23.8% in the same period.

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A similar stellar performance has been delivered by other industry players, such as GEV Vernova GEV, Constellation Energy Corporation CEG and Bloom Energy BE, whose shares have surged 158.3%, 141.1% and 113.7%, respectively, over the past year.

What Led to Oklo’s Recent Price Surge?

The Oklo stock has been riding high on impressive operational performances over the past couple of quarters and strategic partnerships that aim to strengthen its footprint in the clean power generation industry.

Evidently, in January 2025, the company signed a MOU with RPower to deploy a phased power model for data centers. In December 2024, Oklo signed a non-binding Master Power Agreement with Switch, a premier provider of AI, cloud and enterprise data centers, to deploy 12 gigawatts of Oklo Aurora powerhouse projects through 2044. This marked one of the largest corporate clean power agreements ever signed.

In November, Oklo announced its third-quarter 2024 results, which reflected some milestone achievements for the company. Notably, OKLO added two data center customers to its pipeline in the third quarter, bringing its total announced customer pipeline to 2,100 megawatts, reflecting a 200% increase since July 2023. Earlier, in August 2024, the company established a preferred supplier agreement with Siemens Energy for steam turbine generator products and services. 

No doubt, the strategic agreements signed by Oklo, along with notable achievements like the customer pipeline boost, reflected its rapid progress in the clean energy market. This, in turn, was duly reflected in its share price hike observed over the past year. 

Will OKLO Stock Continue to Grow?

The rapid expansion of data centers worldwide, coupled with rising electricity consumption —particularly in emerging economies driven by economic growth — has been fueling global electricity demand. To this end, it is imperative to mention that the United States remains the largest producer of nuclear power, contributing nearly 30% to the global nuclear electricity generation, according to the World Nuclear Association.

Against this backdrop, Oklo is pioneering next-generation fast-fission power plants, known as “powerhouses.” Its Aurora powerhouse line is designed to generate 15-50 megawatts electric (MWe) from recycled and fresh nuclear fuel, with the potential to scale up to 100 MWe. This positions Oklo for long-term growth in the nuclear power sector.

However, the company is yet to generate revenues, with its first Aurora powerhouse expected to be deployed in 2027. This suggests limited top-line performance in the near term. Meanwhile, Oklo continues to incur significant operating expenses to advance its powerhouses, placing pressure on its bottom line. The company’s short-term financial performance remains uncertain, which may concern investors evaluating the stock.

While OKLO’s long-term potential in the nuclear power industry remains strong, its near-term financial challenges and the prolonged timeline before revenue generation may weigh on investors’ sentiment.

The recent downward revision in its first-quarter 2025 earnings estimates reflects growing skepticism among analysts for the stock, as one can see below. Such revisions signal declining confidence in Oklo’s financial prospects in the short run.  Nevertheless, the earnings estimate for 2025 reflects an upward revision.

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OKLO’s Poor ROE Poses Risk

A quick sneak peek at the company’s return on equity (ROE) over the past year compared to that of its industry shows a dismal scenario. OKLO’s ROE is lower than that of its industry. A negative ROE indicates that a company is making a loss, as is evident from its recent quarterly results.

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Final Thoughts

To conclude, investors interested in OKLO stock should wait for a better entry point, considering the downward revision in its first-quarter 2025 earnings estimate and a negative ROE. OKLO currently has a VGM Score of D, which is also not a very favorable indicator of strong performance. 

However, those who already have this Zacks Rank #3 (Hold) stock in their portfolio may continue to do so, considering its long-term growth prospects in the clean energy industry and impressive share price performance over the past year.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Constellation Energy Corporation (CEG) : Free Stock Analysis Report

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