This Nuclear Power Stock Is Up More Than 450% in 2025: 1 Reason Why This Could Be Just the Start

Shares of Oklo (NYSE: OKLO) are swinging wildly since hitting an all-time high of $193.84 per share on Oct. 15. Some investors are suddenly nervous and taking profits off the table after the nuclear energy stock's dizzying run-up in a short time, and shares have tumbled below $120 per share as of this writing.

But here's the thing: Oklo stock is still up over 450% this year, and this could just be the beginning. As a young company in the heart of the nuclear energy boom driven by ever-growing demand for power from artificial intelligence (AI) data centers, there should be plenty of fuel left in Oklo stock. Oklo stands out among the several start-ups building nuclear plants for two reasons.

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Oklo has an edge among nuclear energy start-ups

Oklo is developing fast-fission power plants called Aurora powerhouses that can also run on recycled fuel to produce stable, clean energy at scale. Since the U.S. doesn't recycle used nuclear fuel yet, Oklo's entry into this area is an opportunity that most other nuclear companies aren't exploring for now.

Oklo is investing $1.68 billion to build a fuel center in Tennessee that will recycle used nuclear fuel into fuel to power Aurora plants. Oklo has also just signed a $2 billion partnership with France-based Newcleo to convert surplus plutonium into nuclear fuel.

Second is Oklo's collaborations with the U.S. government. Oklo was awarded nuclear fuel from the Idaho National Laboratory (INL) and recently broke ground at the INL for its first Aurora powerhouse as part of the three projects it won under the Department of Energy's (DOE) reactor pilot program.

Oklo is positioned for a major breakthrough as it expects to start its first-ever reactor, one from the DOE program, by as early as mid-2026. That means the company could be less than a year away from generating its first revenue. Moreover, Oklo has also secured nonbinding letters of intent with multiple potential customers, including Equinix and Diamondback Energy. Its transition from development to revenue generation is the biggest catalyst that could drive this nuclear energy stock much higher.

Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix. The Motley Fool has a disclosure policy.