Investors with an eye to the future and an appetite for risk might want to consider investing in %OkloInc (NYSE: $OKLO), a small-cap stock that makes compact %NuclearReactors.
To be clear, Oklo is on the bleeding edge of technology. The company is a small start-up and its stock is prone to volatility.
That said, many analysts see Oklo as being at the forefront of an energy revolution that will increasingly rely on nuclear power generation to help stem the impacts of climate change.
Oklo was started by two MIT graduates and went public in May 2024 via a special purpose acquisition company (SPAC).
Since then, the company’s share price has gained 208%, including a 42% increase this year as investors bet on the future potential of nuclear energy.
On its website, Oklo says that it designs compact nuclear reactors with the goal of providing clean, safe and affordable energy.
Nuclear energy is getting a lot of attention now, especially in Silicon Valley where a growing number of technology giants are talking about using nuclear energy to power their %ArtificialIntelligence (A.I.) data centres.
It should be noted that Sam Altman, the chief executive of privately held A.I. start-up company %OpenAI serves on Oklo’s board of directors.
With a market capitalization of only $3.77 billion U.S., Oklo is a small-cap stock. But investors are piling into the shares on hopes for its future potential in the nuclear industry.
As a small-cap start-up, Oklo presents some near-term challenges. The company just reported a greater than expected financial loss and warned of additional losses ahead.
Oklo announced a net loss of -$0.74 U.S. per share for all of 2024. That was worse than a loss of -$0.47 U.S. recorded in 2023.
Oklo currently has no revenue and management has warned of additional financial losses in the future.
On a more positive note, Oklo recently announced that it has begun the process of applying for a license with the U.S. Nuclear Regulatory Commission.
The license will allow the company to construct and operate its first nuclear fission plant that has been in the testing phase up until now.
Once operational, the nuclear plant will produce energy that Oklo can sell to customers through power purchase agreements.
The hope is that the sale of energy will generate recurring revenue for Oklo. While not without risk, the company and its shareholders could be rewarded in the future if nuclear energy takes off as many analysts forecast.
