Oklo (OKLO) opened comfortably in the green this morning after the U.S. Department of Energy (DOE) said it has selected the nuclear technology firm for three of its reactor pilot projects.
The selection will “accelerate deployment timelines while providing operational insights that can support long-term commercial licensing and readiness,” the company confirmed in its press release today.
OKLO stock has been exceptionally rewarding as an investment in 2025. Compared to its year-to-date low in early April it’s up more than 330% at the time of writing.
Investors are cheering the DOE announcement primarily because it validates the firm’s advanced microreactor technology and accelerates its path toward commercialization.
The federal support improves OKLO’s credibility with regulators and investors and positions it to gain operational insights that could streamline future licensing.
With no revenue yet and high development costs, government backing helps de-risk the investment thesis and signals long-term viability.
Together, all of it could significantly boost investor confidence in the nuclear energy company and drive a further increase in Oklo share price in the second half of 2025.
Despite their explosive year-to-date rally, Wedbush remains constructive on OKLO shares mostly due to nuclear licensing progress.
According to the investment firm, Oklo has successfully completed Phase 1 of its NRC readiness assessment, which clears the path for its license application in Q4.
Calling it a major regulatory milestone, Wedbush analysts expressed confidence in the company’s recently disclosed partnership with Vertiv (VRT) to supply clean energy to hyperscaler data centers as well.
With AI-driven energy demand expected to surge tenfold by the end of this decade, Oklo’s build-own-operate model positions it for long-term recurring revenues, making the NYSE-listed firm a compelling clean energy play.
Investors should note, however, that valuation remains an overhang for OKLO stock at current levels.
According to Barchart, the consensus rating on Oklo shares currently sits at “Moderate Buy,” but the mean target of roughly $63 actually indicates potential downside of about 20% from here.
