Oklo Inc. (NYSE: OKLO), is on the rise today, after it announced a historic power deal with Switch.
This agreement, titled “one of largest corporate clean energy agreements ever signed”, will deploy 12 gigawatts over the next 20 years of nuclear power and position the advanced nuclear technology firm to respond to increasing demand.
Oklo’s stock has now risen by 300% since its low of early September.
Oklo Stock maintains recent gains
Jim Cramer, a famous investor and renowned speaker on October 29 the th recommended that investors stay away from Oklo stocks. He argued they were experiencing a stock short squeeze.
The New York-listed firm, however, has managed to hold its own for the last seven weeks. This suggests that there is more going on here than just a simple short squeeze.
Oklo has, with the new Switch deal, secured a revenue stream that will continue to grow and is likely to have a stable financial future.
Microsoft and others have already joined Oklo in its move to use nuclear energy amid an AI-driven rise in demand for energy.
These strategic partnerships demonstrate the strong demand for Oklo’s small nuclear reactors.
Its added value may make it a more attractive investment, and its price will rise over time.
What Trump 2.0 could mean for Oklo
Oklo Inc. expects that its microreactors will reduce both the costs and timelines associated with setting-up a nuclear plant.
The company also sells electricity directly to its customers through long-term Power Purchase Agreements, which helps reduce financial risks and up front capital costs.
Chris Wright, a member of Oklo’s board and the President-elect Donald Trump’s choice as Energy Secretary for the United States is a significant development.
This appointment could be a sign that the new government will at least offer some support for nuclear energy, which would benefit Oklo Inc. in the future.
In May, Oklo Stock was launched via the merger of AltC Acquisition Corp and SPAC.
Oklo Stock comes with its own risks
Oklo Inc. is an Oklo Inc., a nuclear energy startup backed by Sam Altman. Peter Thiel counts among its early investors.
Statista predicts that the artificial intelligence market will reach a valuation of $1.0 trillion in the next 10 years.
Oklo stocks are not without risk.
This Californian company has not yet deployed its reactor.
The first of its plants is scheduled to be operational in Idaho Falls by 2027.
Oklo is likely to be in the pre-revenue stage for two or three more years.
The possibility of it diluting shareholders in order to maintain operations is therefore very real.
The company does not pay out a dividend either to help them wait until it starts generating revenues.
The post Cramer gets it wrong about Oklo: This post may change as new information unfolds
