Oklo Inc. (NYSE: OKLO), a big technology company, has seen its stock rise by more than 70 percent in recent months as the demand for energy is driven up by AI.
The shares of fission Technology Company are responding to the large investments announced by Google, Microsoft and Amazon in order to power data centers with nuclear energy.
The DOE approved the Conceptual Safety Design Report for Aurora Fuel Fabrication Facility, a nuclear fuel recycling facility at Idaho National Laboratory.
Many have questioned if investing in Oklo is too late after the recent rise in its stock. It’s better to ask if it is worth investing in Oklo at this time.
Think twice before investing in Oklo stock
Oklo has the ability to transform data centres as it uses recycled nuclear waste in order to reduce its dependency on conventional electricity grids.
It is impressive that Sam Altman, Peter Thiel and other notable investors are involved. Oklo’s recent rise could be hampered by a number of factors.
It merged with an SPAC to become public in May. SPACs have a reputation for a rapid decline after a surge.
According to a study by the University of Florida, renewable energy SPACs returned an average of 84% negative over the last 15 years. This is the first warning sign when investing in Oklo.
Oklo will not be generating revenue any time soon
Oklo’s first plant is not expected to be operational for another 2 to 3 years.
California-based firm is expected to be a business in pre-revenue until at least 2027.
It may therefore struggle to maintain liquidity, and even dilution of shareholders in future years despite continued capital expenditures.
Oklo Inc. is an exciting nuclear technology company on the surface. However, it’s too risky to invest at this time.
Instead, investors should consider building positions in names that are more well-established like Constellation Energy or Dominion Energy. This will allow them to take advantage of the growing demand for nuclear energy.
These are the same ones the nuclear industry has used for decades.
Wall Street rates Oklo’s shares as “overweight” but finds them to be fairly priced at $11 — a sharp discount from the $15.60 at which OKLO was trading when this article was written.
The post Should You Invest in Oklo Stock as Big Tech moves to nuclear power for data centers? This post may be updated as new information unfolds
