This Nuclear Stock Is Down 46%, and It's a Screaming Buy
Key Points
Oklo is designing groundbreaking technology in nuclear energy that could feed AI data centers with the power they need.
The stock has fallen due to a mix of Oklo's pre-commercialization status and bearish sentiments on nuclear energy.
- 10 stocks we like better than Oklo ›
Oklo (NYSE: OKLO) was Wall Street's favorite artificial intelligence (AI) energy stock in 2025. Backed by strategic partnerships -- including with Meta Platforms, Nvidia, and Centrus Energy, as well as with early support from Sam Altman -- Oklo was widely seen as the company best positioned to grow from the power demands of AI data centers.
However, the trajectory of this nuclear energy stock has shifted in 2026. It is trading down about 46% on the year, and about 75% below its 52-week high.
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So what gives? Honestly, nothing new, at least nothing that injures Oklo's long-term outlook. Every downward pressure the company faces today was clear from the get-go: The company has no commercial track record, is still working through the Nuclear Regulatory Commission's approval process, and is reporting losses.
These were all challenges my colleagues and I reported last year, and they are complex ones that require time to solve. Short-term traders might be eyeing Oklo's slow progress, but that bearish sentiment and the resulting sell-off is opening a buying opportunity.
Oklo's Aurora powerhouse is a groundbreaking design. The reactor uses liquid sodium coolant to run at higher temperatures and lower pressures than traditional water-cooled reactors. It has inherent safety features (it doesn't have external pumps for cooling, for example). It is much more compact than traditional reactors, and it can consume both recycled and highly enriched fuels.
Image source: A rendering of Oklo's Aurora powerhouse.
With Oklo developing its own fuel recycling program, the company could one day supply its own reactors with fuel, bypassing potential constraints on the nation's limited nuclear fuel supply.
The company isn't cash-starved -- it has about $2.5 billion in total liquidity -- and it has made progress on its Groves Isotope Reactor in Texas, recently clearing the Department of Energy's final safety approval.
In short, even if the stock is falling, the company is doing what it needs to do now to commercialize its reactors. For long-term investors who can stomach volatility, bearish sentiments on Oklo right now could be creating a buying window for a stock with good long-term prospects.
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Steven Porrello has positions in Nvidia. The Motley Fool has positions in and recommends Meta Platforms and Nvidia. The Motley Fool has a disclosure policy.
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