Why OKLO Stock Is Surging Again Today

Oklo (OKLO) stock is rallying for a second straight trading day, climbing 18% in afternoon trading today. On Friday, the company, which is developing small modular nuclear reactors (SMR), announced a new partnership with electricity provider Rpower.

Under the memorandum of understanding signed between the two companies, RPower will provide electricity to data centers using its natural gas generators within about 24 months. At some point in the future, Oklo will meet the majority of the data centers’ electricity needs with clean power from its SMR. At that time, RPower’s generators will be relegated to backup and resilience roles.

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

“With a growing customer pipeline and a current order book of 14 gigawatts of energy, we are thrilled to work with RPower to address both immediate and long-term energy challenges.” Oklo CEO Jacob DeWitte said in a statement.

Oklo Director Is Poised to Become Energy Secretary

Chris Wright, an Oklo director, has been nominated as Energy Secretary by President Donald Trump. Wright, who could potentially help Oklo down the road in his new position, has resigned from the board, pending his confirmation as Energy Secretary by the Senate.

The Recent Price Action of OKLO Stock

In the last month, the shares have jumped 39%, while they are up 37% in the last three months.

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