Can OKLO Stock Beat the Market?

The profound impact that artificial intelligence (AI) is making on our daily lives is undeniable at this point. However, it means little if data centers are unable to procure an adequate power supply to support the demands of AI computing. This is where Oklo (NYSE: OKLO) comes in -- as the provider of advanced nuclear power solutions to meet the power demands of data center operators (as well as other customers).

Since the start of the year, Oklo stock has soared approximately 400%, vastly outperforming the S&P 500 by a substantial margin, which has risen by about 17% as of this writing. Those considering an Oklo position will want to know how the nuclear energy stock has performed over longer time periods and whether it has the potential to outperform the market in the future.

Let's take a closer look at Oklo to answer these questions and determine if the stock warrants further consideration.

Image source: Getty Images.

What has powered Oklo's past performance?

From its signing of a landmark deal with Switch in December 2024 to its signing of a deal with Korea Hydro & Nuclear Power in May, the company has demonstrated to investors that there's strong demand for its small modular reactors (SMRs).

The greatest catalyst for the stock's rise, however, is President Donald Trump's executive orders, which have essentially spurred a rebirth of the nuclear energy industry. In the press release announcing the orders, White House Office of Science and Technology Director Michael Kratsios asserts, "Over the last 30 years, we stopped building nuclear reactors in America -- that ends now."

Data source: YCharts. Returns as of Dec. 4, 2025. The merger was completed on May 10, 2024.

More recently, investors have bid the stock higher after Oklo announced a major step toward the development of its Aurora powerhouse at Idaho National Laboratory. In mid-November, Oklo signed an agreement with Siemens Energy, which will initiate engineering and design activities to expedite the sourcing of components for the power conversion system.

Oklo stock has the potential to provide even more powerful gains

Offering an innovative approach to meeting the power needs of data center operators, Oklo stock has garnered substantial interest from growth investors who recognize the significant market opportunity that lies ahead for the company. Should Oklo succeed in advancing its Aurora powerhouse from the prototype stage to actual commercial operations, it's highly likely that investors will race to click the buy button.

For a company in the early innings of its development -- and pioneering a novel approach to supplying energy -- such as Oklo, however, there are substantial risks. For example, there's no certainty that the company will receive the requisite regulatory approvals for its advanced nuclear reactor. Similarly, if it does achieve commercial operations, there's no guarantee that Oklo will find its business to be profitable.

So, while Oklo stock has beaten the market since its May 2024 IPO, whether it will continue to do so going forward will depend on the factors outlined above. For these reasons, only those who are comfortable with higher-risk investments should consider positions in Oklo.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Siemens Energy Ag. The Motley Fool has a disclosure policy.