Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy

Published 01/24/2025, 10:03 AM
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Investing.com -- Wedbush nearly doubled its price target for Oklo Inc to $45 from $26 given the company’s role in meeting the soaring energy demands from AI. Brokerage maintained its "Outperform" rating, noting Oklo’s advanced nuclear technology and strong growth potential in powering AI datacenters.

“Our confidence in the AI Revolution datacenter buildout is increasing under the Trump Administration,” analyst at Wedbush said.

Backed by OpenAI CEO Sam Altman, Oklo aims to deploy its first small modular reactor, Aurora, by 2027. The company’s "build, own, and operate" model focuses on selling power directly to customers under long-term contracts, offering stable recurring revenues and a streamlined regulatory path.

“We also believe Project Stargate is the start of a much bigger AI initiative within the Beltway with nuclear energy ultimately playing a key role in powering datacenters at the foundation of the 4th Industrial Revolution and Oklo is set to be a major player,” analyst added.

Wedbush noted that Oklo has secured commitments for 600 MW of its planned 1,350 MW output under letters of intent, primarily from data centers. The firm sees Oklo as strategically positioned to benefit from the projected tenfold increase in AI computing power demand by 2030.

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