Oklo (OKLO) is surging for a second straight day, advancing 4.5% today, after Lightbridge (LTBR) on Jan. 22 unveiled a new, pending partnership with OKLO. Oklo is developing small, modular nuclear reactors, while LTBR "develops nuclear fuel technology." An aerial view of a nuclear plant, its domes casting a unique shadow. The Potential Alliance Between OKLO and LTBR The two firms signed a memorandum of understanding. Under the agreement, the firms will evaluate "opportunities for cooperation in reprocessing and recycling used uranium-zirconium fuel," LTBR noted in a regulatory filing. Additionally, LTBR intends to "conduct a feasibility study of co-locating a Lightbridge Commercial-scale Fuel Fabrication Facility at Oklo’s proposed commercial fuel fabrication facility," Lightbridge reported. Investment Bank Is Bullish on Nuclear Power, OKLO Appearing on CNBC yesterday, George Gianarikas, an analyst at investment bank Canaccord Genuity stated that nuclear power would be instrumental in boosting electricity production going forward. Gianarikas noted that the AI boom would likely cause electricity demand to jump, and he identified OKLO as one firm that's well-positioned to benefit from the latter trend. “We need a boatload of capital expenditure to enable artificial intelligence and the sustainability revolutions,” he said. “That involves, very likely, a lot of nuclear power because it's clean and it's base load," Gianarikas stated. While we acknowledge the potential of OKLO, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.