Nuclear energy in the AI race: Is Oklo truly a worthwhile investment choice in 2026?

A Glorious Past Does Not Guarantee Future Profits

The year 2025 has witnessed an unexpected high-speed train for stocks related to nuclear energy, especially Oklo Inc. (OKLO). This company, based in Santa Clara, California, specializes in developing small modular nuclear reactors capable of operating for two decades without fuel replenishment. The OKLO stock has experienced impressive growth, with its value increasing up to 6.5 times from the initial price. However, the final quarter brought a cold shower as the stock lost over 50% of its value, creating deep disappointment among investors who participated during the peak.

This decline is not entirely due to overvaluation. According to Joseph Shangraw, an analyst at Wood Mackenzie, the main reason stems from a shift in market attention. Despite the long-term potential of nuclear energy, coal-fired power plants and data center expansion projects are attracting more resources and focus within the industry.

Energy Demand from AI: A Passing Opportunity?

The development of artificial intelligence has certainly created sustained energy demand. Data centers require enormous computing resources, and forecasts indicate this will continue at least until 2026 and beyond. The soaring energy consumption is an obvious reality.

The weakness lies in the fact that financial markets often price in these trends in advance. Much of the optimism has already been reflected in current valuations. For companies that have not yet generated revenue like Oklo, determining how much of the future potential is already factored into the stock price becomes extremely complex and uncertain.

Oklo Financials: The Real Numbers

Oklo announced its Q3 results on November 11, with EPS at -$0.20, significantly below analysts’ forecast of -$0.13. The financial outlook remains negative: Q4 EPS is projected at -$0.17 and for the entire 2026 at -$0.63.

Although these loss figures seem concerning, the company’s management maintains a positive attitude. They argue that the cash burn rate is within plan, and the $1.2 billion cash reserve supports ongoing R&D activities. Both the CEO and CFO emphasize the importance of focusing on legal milestones, project execution, and R&D progress rather than short-term financial metrics.

For a company in its early development stage, not yet profitable, this may not be the top concern. However, investors must understand that Oklo remains a high-risk investment in nuclear energy and AI technology.

Community Analyst Perspectives

Currently, nineteen analysts follow OKLO, with about half issuing a “Strong Buy” rating. However, seven “Hold” recommendations reflect divided opinions on the company’s prospects. The average target price is $108.56, implying a potential increase of 13.6% from the current level. More optimistic forecasts have a high target of $175, suggesting an 84% upside.

The early December period has seen a series of positive upgrades from analysts, providing short-term support for the stock.

Nuclear Energy: When Attention Shifts

Nuclear energy is currently under political support, but market trends suggest otherwise. Coal-fired power stocks have outperformed those related to nuclear energy, despite ongoing environmental concerns. This indicates that if the industry continues to prioritize traditional capacity expansion for data centers, companies like Oklo could be left behind.

Investors should monitor broader industry trends rather than focus too much on a single company. The easy upward momentum for OKLO may be behind us, and future success depends on factors beyond the company’s control.