The AI gold rush cools down, is this nuclear energy stock still worth buying?

Nuclear Power Becomes the “Cold Bench,” Coal Gains Momentum

Last year, AI computing power demand exploded, driving the entire energy sector. But there’s an interesting contradiction: although data centers are consuming more and more electricity, in the capital markets, coal-fired power and traditional power stocks outperformed nuclear energy concepts. According to Wood Mackenzie analyst Joseph Shangraw, current opportunities for expansion are more abundant in coal power plants and data centers, which directly divert attention away from nuclear stocks.

The question is: Does this mean that nuclear energy is a market mispricing opportunity, or has the market already priced in this round of hype? For companies like Oklo that haven’t yet generated revenue, it’s even harder to see through this question.

Oklo’s “Rollercoaster”: From 6.5x Gains to Halving

Located in Santa Clara, California, Oklo focuses on small modular reactor technology, an innovation that has received strong backing from the political sphere. In 2025, OKLO’s stock experienced a wild surge—peaking at a 550% increase. But fortunes turned, and in the fourth quarter, the stock was halved, leaving latecomers with significant losses.

The truth behind this volatility is simple: once government attention wanes, capital enthusiasm cools rapidly. Coal power promises faster capacity release, data centers are accelerating contracts with traditional power sources, and the relative attractiveness of nuclear energy is significantly diminished.

The clear takeaway for investors is: Even if you are long-term optimistic about nuclear energy prospects, short-term gains may already be gone.

Financial Data Tells the Truth: Burning Money Continues

In November, Oklo released its Q3 earnings report, with an EPS of -$0.20, far below analyst expectations of -$0.13. More painfully, the company forecasted Q4 EPS at -$0.17, and full-year 2026 losses are expected to widen to -$0.63.

At first glance, these numbers are alarming, but Oklo’s management downplays them—highlighting that cash burn rate is within controllable limits, with $1.2 billion in cash reserves supporting ongoing R&D. Both CEO and CFO stated that instead of focusing on quarterly losses, attention should be on regulatory progress and project execution.

Honestly: For a company at this stage, losses are understandable; but for investors, it also means waiting a long time to see an inflection point in profitability.

Wall Street’s Divided Attitude: To Buy or Not to Buy

19 analysts cover OKLO, with half giving a “Strong Buy” rating, and the other 7 recommending “Hold.” This split clearly indicates that there are genuine disagreements about Oklo’s future prospects.

The average target price among analysts is $108.56, representing about 13.6% upside; the most optimistic forecast even points to $175, implying an 84% increase. Since December, a wave of upgrades has indeed emerged, providing short-term support for the stock price.

To Buy or Not to Buy? It Depends on Your Risk Appetite

If you are a believer in the long-term prospects of small modular reactor technology, Oklo still offers opportunities. But if you are expecting quick profits from this stock, the timing may already have been missed. In the long run, the demand for nuclear energy genuinely exists; in the short term, the spotlight on coal power and data centers is a fact.

Oklo remains a high-risk, high-potential investment. Before deciding to buy, investors need to ask themselves: can you tolerate a potential 50% halving? If the answer is yes, the current price might indeed present an opportunity; if no, it might be better to wait for fundamental improvements down the line.