Sam Altman-Backed Oklo Stock Gets Price Target Hike From Wedbush On Hopes Of AI Raising Power Demand

Wedbush Securities on Friday raised its price target on energy company Oklo Inc. (NYSE:OKLO) to $45 from $26 while maintaining an “outperform” rating citing increased confidence in the AI revolution data center buildout increasing under the new Trump Administration.

What Happened: Oklo, backed by OpenAI CEO Sam Altman, is developing nuclear fission power plants to provide energy at scale. Wedbush said in a note on Friday that it believes nuclear energy will ultimately play a key role in powering data centers, given Project Stargate is merely the start of a larger AI initiative.

Given Altman’s key AI role, Oklo too, will be a major player, Wedbush said.

According to Wedbush, the “AI revolution” is driving demand for clean energy to power AI initiatives with the need for computing power only expected to grow. Oklo, it says, is in a great position to capitalize on the elevated demand.

Further, the company’s business model involves selling its power directly to customers and not the reactors under long-term contracts, enabling it to make long-term recurring revenues, it said.

Why It Matters: Oklo, however, is yet to make a revenue and reported a net loss of over $63 million for the nine months through the end of September.

Oklo shares closed up 7.8% at $41.82 on Friday. The stock is up 91.4% year-to-date, according to data from Benzinga Pro.

Oklo has a consensus price target of $28.67 based on the ratings of 4 analysts tracked by Benzinga and a consensus “buy” rating.

Earlier this month, Citigroup increased the stock’s target price to $31 from $10, while maintaining a “neutral” rating.

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Photo courtesy: Oklo