June 5, 2025

June 5, 2025 HOME
Nuclear Gone Wild, but not Chernobyl Wild

It is no secret that energy is in crazy high demand lately, especially with the rise of AI, data centers, and rising world temperatures. While the social fear surrounding non traditional energy sources is a steep hill to climb, there are multiple companies trying to change that (SMR, OKLO, CEG). Ever since the Trump administration has taken office, there has been a hush about his stance on nuclear energy. Well on May 23, he signed an executive order detailing out the adminstration's plan to increase nuclear energy production, provide funding, and recommendations on long term spent waste storage. While I am skeptical of the last point, I do still think this is a positive step for the nuclear energy sector. OKLO seems to agree as it is +18% since this executive order. Zoom out and it is an astounding +115% YTD.
Why OKLO, compared to the dozens of other nuclear energy companies? I will tell you my original reason: Sam Altman. Altman was a chairman and big investor of Oklo, ever since 2015. Based on history, Altman seems to be a modern day Midas when it comes to startups. He is most notably known for co-founding OpenAI, maker of generative AI ChatGPT (thanks for helping me code this website btw). But I am not here to talk to you about AI, I am here to talk to you about his faith in Oklo, which in turn instilled the faith in me. While he did step down from his chair role in April, I think this is an overall positive step for both parties. For one, it shows that Oklo has developed itself into a strong company, not needing the image of someone like Altman to prop up their credibility. They also have recently appointed a new CTO, a 40 year veteran engineer with a plethora of energy experience, specifically fission. I view this appointment positively as I strongly believe engineers in executive positions in technical companies leads to the success and safety of said company (see BA's recent failures largely due to this). Altman stepping down also opens the door for potential future partneships with his baby, OpenAI.
Engineering bias aside, Oklo has also shown immense positive growth since Sam Altman's departure; signing an agreement with a Korean energy company that operates hydroelectric and nuclear plants (KHNP). These two companies plan to collaborate with the design of Oklo's Aurora reactor, a 75MW reactor. Keep in mind, this reactor is slated to be deployed and operational late 2027, most likely 2028. Oklo has also shown in their recent earnings report that their energy order demand has grown 14x in less than 2 years. One of these orders is from oil and gas company Diamondback Energy (FANG).
At the end of the day, I do not think it matters which nuclear energy company you pick. I think this sector is a good diversifier for your portfolio that is showing signs of massive growth right now. Viewing trends lately, most these companies have been swinging with the same news, so if one wins, they all win (watch out for the inverse of this as well). Just keep in mind, a slow down in AI, a large reason for these blue chip companies investing in nuclear, could hurt the sentiment surrounding these stocks. I think a fair entry point into OKLO would be between $30-$40, so keep your eye out and your ear to the ground. Whether you are looking for a short play to ride some of the +50% weeks, or play the long game and wait until Oklo becomes cash positive, OKLO belongs on the watchlist.