OKLO opened more than 10% down on Thursday morning as investors reassessed the company’s valuation and the possibility of it starting to generate revenue in the near term.
The stock also fell after Michael Klein CEO of Churchill Capital Corp disclosed the sale of a significant stake in the advanced nuclear reactor developer.
According to a regulatory filing, Klein sold 50,000 shares of the Santa Clara, California-based company on Monday through multiple transactions, generating proceeds of about $6.7 million.
Despite Nvidia’s recent $100 billion deal with OpenAI, which is expected to demand unprecedented levels of energy to power AI infrastructure, OKLO stock isn’t being viewed as a direct beneficiary.
That said, OKLO shares have been a lucrative investment in 2025.
At the time of writing, they’re up some 450% versus the start of this year.
Why OKLO stock isn’t riding the Nvidia-OpenAI wave
While the Nvidia-OpenAI deal underscores the urgent need for scalable, clean energy, OKLO’s business model isn’t yet positioned to capitalise.
The company’s advanced fission reactors remain in development, with no operational power plants currently online.
Regulatory hurdles, long permitting timelines, and technical milestones still stand between OKLO and commercial deployment.
Even if demand for nuclear surges due to the Nvidia-OpenAI partnership, OKLO’s ability to meet it is speculative at best.
Therefore, investors are discounting the hype – focusing instead on execution risk and the long run way before revenue so much as begins to materialize. That’s why OKLO stock is in the red today.
Goldman Sachs says OKLO shares lack meaningful upside
OKLO shares are losing ground also because Goldman Sachs analysts cautioned investors against buying them at current levels in a research note today.
The investment firm assumed coverage of the nuclear technology stock this morning with a neutral rating and a $117 price target – roughly in line with its price at writing – indicating a lack of any further upside.
The analysts cited “limited visibility into revenue generation” and “execution risk tied to regulator approvals” as key reasons for restraint.
While Goldman Sachs acknowledged OKLO’s potential in the long term, it emphasized the firm’s current valuation already reflects aggressive growth assumptions.
In short, without near-term catalyst, OKLO stock may struggle to justify its premium, it concluded.
How to play the Nvidia-OpenAI driven surge in power demand
The Nvidia-OpenAI deal is a wake-up call for energy markets, but OKLO’s timeline doesn’t align with the urgency.
Until its reactors are operational and contracts materialize, the nuclear energy stock may remain a speculative play rather than a strategic asset.
Investors chasing AI-adjacent trades may prefer companies with immediate capacity – and OKLO, for now, is still in the blueprint phase.
A better pick to play the Nvidia-OpenAI driven surge in power demand may be Bloom Energy as its fuel cells are one of the very few deployable solutions in the near term.
Note that the consensus rating on OKLO shares remain at “overweight” in the back half of 2025 – but the mean target of roughly $85 indicates potential “downside” of another 30% from here.
This further substantiates that OKLO stock’s rally this year has indeed gone a bit too far.
The post Nvidia-OpenAI deal means surge in power demand – why isn’t it lifting OKLO stock appeared first on Invezz
