Shares of Oklo Inc. (OKLO), a promising nuclear power startup, surged 7.55% in pre-market trading on Tuesday, fueled by the company's strategic moves to bolster its nuclear fuel recycling and fabrication capabilities.

The rally came after Oklo announced a collaboration with Lightbridge Corporation (LTBR) to explore the co-location of their commercial fuel fabrication facilities and joint efforts in recycling nuclear waste. This partnership could yield significant synergies, reducing upfront capital expenditures and ongoing operating costs for both companies.

Analysts viewed the agreement as a positive step for Oklo in solidifying its position in the nuclear energy industry. Craig-Hallum initiated coverage on Oklo with a Buy rating and a $44 price target, citing the startup's potential to capitalize on the growing demand for clean energy, particularly from the booming artificial intelligence sector.