Nuclear stocks, including Oklo (NYSE:OKLO), surged on Friday following reports that US President Donald Trump is set to sign executive orders aimed at revitalizing the nuclear energy industry.
These orders are expected to simplify the approval process for new nuclear reactors, strengthen fuel supply chains, and invoke the Defense Production Act to address national security concerns related to nuclear materials and components.
Oklo, a nuclear startup backed by OpenAI CEO Sam Altman, saw its shares jump 26.7% to about $50 shortly after the opening bell.
Other beneficiaries were NuScale Power, which added 16.8%, Lightbridge, up 34.5% and Centrus Energy, up 22.1%.
Uranium producers also notched gains, with Uranium Energy up 18.8%, Energy Fuels 14.6%, Cameco 7.8%, and NexGen Energy 9.9%.
Trump’s executive order is expected to direct agencies to permit and site new nuclear facilities and direct the Departments of Energy and Defense to identify federal land and facilities in a more streamlined process, according to Wedbush analysts.
They expect the executive order to be a significant tailwind for the industry, with Oklo one of the main beneficiaries. As such, they raised their price target on ‘Outperform’-rated Oklo to $55 from $45.
“The company was on track to submit its former combined license application (COLA) to the US Nuclear Regulatory Comission by the end of 2025 and deploy its first commercial power plant at Idaho National Laboratory by the end of 2027 with this executive order potentially accelerating the timeline through increased federal funding and a much more streamlined regulatory process,” analysts wrote.
They see Oklo as a step ahead of its peers in the competitive nuclear market with its planned deployment and Altman’s backing.
They believe data centers will drive major demand for small modular reactors (SMRs) over the next decade due to soaring energy needs. Oklo is well-positioned after announcing its Aurora Powerhouse can deliver up to 75 MW, enough to meet data center demands without redesign, the analysts believe.
“The company builds, owns, and operates its own business model by selling its power directly to customers, not the reactors under long-term contracts, which we believe positions the company in a solid spot to provide long-term recurring revenues while reducing many pain points within typical nuclear projects,” Wedbush wrote.