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Can DOE's Fuel Line Project Accelerate OKLO's Growth Story?

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Key Takeaways

  • OKLO was chosen by the DOE for its Advanced Nuclear Fuel Line Pilot Projects initiative.
  • The company will build three fuel-fabrication facilities to support its Aurora reactors.
  • DOE partnerships position OKLO as a central player in America's nuclear and AI energy drive.

Oklo Inc. (OKLO - Free Report) has reached another defining moment in its fast-moving story, securing selection from the U.S. Department of Energy (DOE) for its Advanced Nuclear Fuel Line Pilot Projects. The initiative is designed to accelerate the construction of domestic fuel-fabrication facilities that can strengthen America’s nuclear supply chain and reduce reliance on imported materials — an increasingly critical goal for national energy security.

Under the DOE program, OKLO will build and operate three advanced fuel-fabrication facilities that will support its Aurora reactors and other next-generation designs. The company’s inclusion follows its earlier participation in DOE’s Reactor Pilot Program, which also aims to streamline licensing and attract private investment into the nuclear sector. Together, these two projects position OKLO at the heart of the government’s strategy to revitalize U.S. nuclear infrastructure and drive clean energy innovation.

OKLO’s rise has been nothing short of remarkable. Once a small nuclear startup, it has captured investor attention by merging nuclear technology with the AI-driven energy narrative that dominates today’s markets. Its market cap has surged as enthusiasm builds around advanced fission and domestic fuel production. With DOE’s backing, OKLO is no longer just a promising newcomer — it is emerging as one of the key players shaping America’s next phase of nuclear and AI-powered energy development.

How Nuclear Peers Are Shaping Their Fuel Strategies

Entergy Corporation (ETR - Free Report) is pushing ahead with next-generation nuclear technology to cut emissions and support cleaner energy goals. The company has obtained a permit in Mississippi for a potential new reactor site and is engaging with industrial and tech clients — especially in AI and data — to explore partnerships for deploying small modular reactors (SMRs). These collaborations aim to tackle the financial and regulatory hurdles tied to developing next-generation nuclear projects.

Dominion Energy (D - Free Report) is also taking major steps toward advancing nuclear power, particularly through SMR technology. In October 2024, Dominion signed an MOU with Amazon to study the possibility of installing SMRs at its North Anna facility in Virginia. As AI data centers drive up electricity demand, Dominion’s nuclear assets could provide a reliable, carbon-free energy source to meet this growing need.

The Zacks Rundown on OKLO

Shares of Oklo have surged more than 500% so far this year.

Zacks Investment Research Image Source: Zacks Investment Research

From a valuation perspective — in terms of the trailing 12-month price-to-book (P/B) ratio — Oklo is trading at a significant premium compared to the industry average. The company carries a Value Score of F.

Zacks Investment Research Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for Oklo’s earnings has been revised over the past 60 days.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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