This Stock Rose 88% In A Month And Its AI Tailwind Is Only Getting Stronger

What a past month it’s been for shares of nuclear innovation play Oklo (NASDAQ:OKLO), which are still up close to 88%, even after Wednesday’s painful 8% pullback. Since first writing about Oklo as a nuclear energy name that could benefit greatly from the AI tailwind way back in October 2024, shares have gained more than 470%.

Indeed, the Sam Altman-backed nuclear innovator went from a relatively unknown mid-cap stock to an explosive momentum gem that’s fallen on the radars of many. Indeed, not a whole lot was known about Oklo when it went live on the public markets.

Still, I highlighted that Sam Altman’s investment was a massive vote of confidence that was not to be ignored. While Altman has won big with the nuclear AI play, I still think there’s room to run, even as the market cap eclipses $20 billion.

Oklo stock is still a name to watch closely

Undoubtedly, investing in smaller, high-growth companies that aren’t making a profit won’t sit right with many, no matter how grand the growth opportunity at hand is. And though pursuing shares of OKLO on the way down after its latest melt-up could prove dangerous, I still think the Sam Altman stock is worth watching and perhaps nibbling gradually into weakness.

Of course, it’s hard to value such a hyper-growth sensation, but I do think we’re getting to a point where newly-announced deals, which could come frequently, could act as steady drivers of the share price over the near- to medium-term. Sure, it’s hard to know which big deals will happen, but for long-term believers with the stomach to ride out the big swings, I don’t think the timing aspect matters as much in the grander scheme of things.

Oklo stock may be best held over the long term

So, while OKLO will be a trader’s playground, I’m inclined to believe it’s a great albeit riskier long-term growth investment for those with strong stomachs. Take the latest breakthrough with the company’s Aurora powerhouse, which helped nudge shares a bit higher, even after its meteoric and euphoric past-month melt-up. Indeed, the partnerships and government interest in small nuclear reactors (SMRs) and Oklo’s technology are starting to come in, and it might be just the start.

Add some Wall Street analyst upgrades into the equation, and I think it’s tough to bet against Oklo, even if you’re not a fan of the sky-high valuation. There are just too many catalysts and too big a market opportunity to stand in the way of what could be one of the most innovative forces in energy today.

With few notable rivals in the space and an AI tailwind that may still be discounted by investors who’ve been eager to take a profit in the past few sessions, I do think another attractive entry point could be on the horizon for those with the patience to see how things pan out. Indeed, the company is going through quite a bit of cash, and some Wall Street pros are skeptical as to whether today’s lofty price tag is worth paying up.

What if there’s an AI bubble that’ll burst?

Certainly, if there is an AI bubble and it were to burst sooner rather than later, it’s tough to envision a scenario where OKLO shares would not be leading the charge lower, especially after its multibagger past year of gains. The company isn’t just not profitable, it’s still technically a pre-revenue firm. However, as new deals are inked, it won’t take long before OKLO hits the ground running, with a growth rate that might shock and maybe even awe.

With the bulls and bears split on the name, it’s tough to know what to do with the stock other than watch and wait for a more reasonable price of admission. Bank of America analysts are a fan of the SMR pipeline and the potential hyperscaler upside despite the seemingly lofty multiple and not much to go by in terms of more traditional valuation metrics.

If you’re a believer in the technology and have the cash to speculate, then OKLO stock might be a name to stick with. In terms of putting new money to work, though, I’d wait for a cooling off of the shares, just in case the latest Wednesday dip is the start of a share price meltdown.