This nuclear power stock was the standout performer in 2025. Is it wise to continue purchasing it in 2026?

AI Growth Fuels Ongoing Energy Demand

As artificial intelligence continues to expand, the need for computing resources is projected to remain strong well into 2026 and beyond. This surge in computing requirements directly translates to sustained high energy consumption. However, this trend does not guarantee that companies supplying power to data centers will automatically see their stock prices rise. The market often anticipates such developments, and much of the optimism may already be reflected in current valuations. For businesses like Oklo (OKLO), which have yet to generate revenue, it becomes particularly challenging to determine how much future potential is already factored into their share price.

Although the AI boom has generally benefited energy stocks, nuclear energy has received notable attention, especially from former President Donald Trump. Oklo’s innovative small modular reactor has positioned the company as a key player in the sector, warranting closer examination—especially after its stock price dropped by more than 50% in just a few months.

Overview of Oklo

Headquartered in Santa Clara, California, Oklo specializes in advanced nuclear technology. The company is recognized for its development of compact, safer nuclear reactors capable of operating for up to two decades without refueling.

In 2025, OKLO shares experienced a remarkable rally, climbing as much as 6.5 times their starting value. However, the final quarter of the year saw the stock lose over half its value, disappointing those who invested late in the surge.

The sharp decline in Oklo’s stock was not necessarily due to overvaluation, but rather a shift in focus away from nuclear energy after initial government backing faded. According to Wood Mackenzie analyst Joseph Shangraw, coal-fired plants and data centers are currently providing ample employment opportunities. Despite environmental concerns, coal stocks have outperformed, while nuclear-related shares have lagged. This could present a buying opportunity, but it also indicates that earnings projections for nuclear companies have not improved.

If the industry’s attention remains on expanding capacity for data centers and coal plants, these sectors could ultimately benefit the most, potentially leaving nuclear stocks like OKLO behind. Investors should therefore monitor broader industry trends rather than focusing solely on Oklo. The period of easy gains for OKLO may already have passed.

Oklo’s Recent Earnings Performance

On November 11, Oklo released its third-quarter results, reporting an earnings per share (EPS) of -$0.20, which was significantly below analyst expectations of -$0.13. Projections suggest that earnings will remain negative, with Q4 EPS estimated at -$0.17 and a full-year 2026 forecast of -$0.63.

Despite these figures, management remains optimistic, noting that the company’s cash burn is within anticipated levels and that its $1.2 billion in cash reserves are supporting ongoing research and development. Both the CEO and CFO have emphasized the importance of focusing on regulatory milestones, project execution, and R&D progress, rather than traditional financial metrics.

For a company at Oklo’s stage, missing earnings targets may not be critical. Leadership’s emphasis on long-term progress over short-term numbers is understandable. However, investors should carefully consider potential risks before investing, as Oklo remains a speculative play in the AI and energy sectors.

Analyst Opinions on OKLO

Nineteen Wall Street analysts currently cover OKLO, with half rating it as a “Strong Buy.” However, the presence of seven “Hold” recommendations indicates a split in sentiment regarding the company’s future.

The average price target stands at $108.56, representing a potential 13.6% increase from current levels. The most optimistic target, at $175, suggests the stock could rise by 84%. Early December saw a wave of positive analyst upgrades, providing short-term momentum for the stock.