Here’s Why Oklo Inc. (OKLO) Is Skyrocketing

We recently published an article titled Why These 10 Small-Cap Stocks Are Skyrocketing. In this article, we are going to take a look at where Oklo Inc. (NYSE:OKLO) stands against the other small-cap stocks.

Wall Street is increasing its bet on small-cap stocks, suggesting that the sector will potentially outperform in 2025. The reasons behind this are simple. While stable rates will be one of the biggest tailwinds for small-cap names, analysts also expect stronger valuations and solid earnings growth from the sector in the year ahead. Most importantly, with expectations tied to the market broadening, investors and analysts are excited to see how the market conditions pan out for small caps.

Ten companies in diverse sectors such as the financials, healthcare, technology, and energy industries, locked in overall positive market gains due to supportive market conditions, macroeconomic environment, and growth potential. That said, let’s take a look at the 10 small-cap stocks that happen to be skyrocketing.

To come up with the 10 names, we only considered stocks with a market capitalization between $1 billion and $10 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the top 10 with the highest 30-day return from December 16, 2024, to January 16, 2025.

A Nuclear power plant with all its safety & security protocols in place.

Oklo Inc. (NYSE:OKLO)

30-day Return as of January 16, 2024: 31%

Oklo Inc. (NYSE:OKLO) is an advanced nuclear technology company based in California. The company was founded in 2013 and designs compact fast reactors with a mission to provide clean, safe, and affordable energy.

OKLO grew by 31% over the past 30 days, with a share price of $24.17, up from $18.48 on December 16, 2024. Under updated rules in the United States, nuclear power is now eligible for hydrogen tax credits, one of the primary reasons for the surge in OKLO’s share price.

The Street is also bullish on OKLO, and their median price target of $27 points to an upside of 12% from current levels. In addition to that, on January 8, Citi raised its firm’s price target from $10 to $31. The analyst firm believes that energy companies are well-positioned to achieve more solid financial gains in 2025 than they were last year.

Overall OKLO ranks 5th on our list of the small-cap stocks that are skyrocketing right now. While we acknowledge the potential of OKLO as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKLO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.