Why Oklo Stock Slumped 4.2% Today
Key Points
Google's newest model was trained on its own energy-efficient TPUs.
Meta is reportedly negotiating a multi-billion-dollar TPU deal with Google
The news has spooked Oklo investors betting on ballooning power demands from AI.
- 10 stocks we like better than Oklo ›
Shares of Oklo (NYSE: OKLO) fell on Tuesday, finishing the day down 4.2%. The drop came as the S&P 500 and Nasdaq Composite jumped 0.9% and 0.6%, respectively.
The success of the latest artificial intelligence (AI) model from Alphabet's Google, as well as rumors of a massive chip deal between Google and Meta Platforms, is pressuring Oklo and other nuclear stocks.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Google's TPUs are spooking the market
Nuclear stocks like Oklo's have surged this year as investors bet on AI's future energy demands. The narrative has been straightforward: AI data centers will strain the grid, creating an urgent need for new power sources.
Google's TPUs are complicating that story. The TPUs -- specialized semiconductors that are significantly more energy-efficient than the GPUs that have made Nvidia the most valuable company in the world -- were used to train Google's latest and highly successful AI model, Gemini 3.
Image source: Getty Images.
And now, today's leak that Meta is negotiating a multi-billion-dollar TPU deal is sending nuclear investors scrambling. If TPUs become the industry standard, AI's energy demands would be significantly less than once thought.
This wouldn't be too much of an issue for Oklo if its stock didn't already carry a hefty premium. While the technology it is working on is exciting, there are too many unknowns to justify its current valuation, and I would avoid the stock unless you have a significant risk tolerance.
Should you invest $1,000 in Oklo right now?
Before you buy stock in Oklo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $576,882!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,006!*
Now, it’s worth noting Stock Advisor’s total average return is 1,002% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 24, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
Recommended Articles
