Is Oklo the Smartest Investment You Can Make Today?

Oklo (NYSE: OKLO), a developer of microreactors for modular nuclear power plants, went public through a merger with a special purpose acquisition company (SPAC) nearly two years ago. It opened at $15.50 per share on its first day, and it now trades at about $48.

Oklo's stock more than tripled even though it hasn't deployed any of its microreactors or generated any meaningful revenue yet. But could this speculative nuclear energy stock actually be one of the smartest long-term investments you can make today?

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Why are investors excited about Oklo?

Over the past few years, the rapid growth of the power-hungry cloud, data center, and AI markets has driven more countries to revisit nuclear power as an alternative to fossil fuels. However, conventional nuclear reactors are large and expensive, and they need to be refueled in stages every two years. They're also hard to deploy in remote areas.

Oklo addresses those challenges with its Aurora microreactor, which generates only 1.5 MWe on its own but can be chained with more reactors to deliver up to 75 MWe per deployment. That modular design makes them ideal for deploying remote and off-grid nuclear power plants.

The Aurora also uses metallic uranium fuel pellets, which are denser, more resistant to high temperatures, and cheaper to fabricate than the uranium dioxide fuel pellets used in conventional reactors. It also reprocesses and recycles that fuel in a closed loop, allowing it to last about a decade without refueling.

How fast could Oklo grow?

Oklo broke ground on its first Powerhouse reactor in Idaho last September, with a maximum capacity of 75 MWe. The U.S. Department of Defense also selected it to build a small reactor for Eielson Air Force Base in Alaska last June.

To support that expansion, Oklo has been working with Siemens Energy to produce steam turbine and generator systems, and Centrus Energy (NYSE: LEU) to provide its nuclear fuel services through a joint venture. The U.S. Nuclear Regulatory Commission (NRC) also recently approved its first materials license, and the U.S. Department of Energy approved its nuclear safety design agreement for the Aurora Powerhouse reactor.

Oklo's business is still in its infancy, but it could start generating significant revenue after deploying its first reactors in Idaho in 2027. Analysts expect Oklo's revenue to rise from less than $1 million in 2027 to $36 million in 2028 -- and it could grow even larger over the next decade as it secures more long-term contracts. So while Oklo's stock might seem pricey with a market cap of $8.3 billion, it could be a life-changing investment in a new nuclear technology.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.