Why Oklo (OKLO) Stock and Sable Offshore (SOC) Are Advancing Today

The shares of Oklo (OKLO) and Sable Offshore (SOC) are climbing by nearly 10% and 16%, respectively today. Oklo is developing power plants that utilize nuclear fission, while Sable is involved in oil and gas exploration.

Oklo’s rally began yesterday after the company disclosed that it had signed a non-binding agreement to provide 12 gigawatts of power to Switch. The latter firm offers “AI, cloud and enterprise data centers.”

An aerial view of a nuclear plant, its domes casting a unique shadow.

According to Oklo, the deal, which will extend through 2044, “is one of the largest corporate clean power agreements ever signed.” Under the arrangement, Oklo’s “powerhouses” will provide electricity to Switch ” across the United States through a series of power purchase agreements.”

Turning to Sable,  its shares are jumping after the firm disclosed that it had received waivers for its pipelines from the California Office of the State Fire Marshal. The waivers, which were first disclosed on Dec. 17,  involve rules for cathodic protection and seam weld corrosion. A federal court had ruled that the company had to obtain these waivers in order to resume operating its California pipeline.

In the wake of the approval, the company is slated to resume hydrotesting ahead of restarting production at its Santa Ynez Unit offshore platforms and Las Flores Canyon processing facilities. The firm is expected to restart production at those locations in the first quarter of 2025.

While we acknowledge the potential of OKLO, our conviction lies in the belief that some 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.

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