While the stock market correction has rattled investors, and while tariff fears remain, most companies are still executing on long-term plans. That includes the rollout of AI, which includes not just new software and AI models, but the hardware and infrastructure necessary to make it all work.
One key element of that plan is power. Many big-tech companies have shifted to nuclear power for its high base-load generating capacity, and low operating cost.
Today, while old nuclear plants are looking to be restarted, newer generations of nuclear power plants are also coming online. One such company Oklo (OKLO), is already moving forward with its first commercial power plant.
While Oklo shares are already up 150% over the past year, with a market cap under $5 billion, it’s still a small-cap stock with considerable upside as it shifts from conceptual nuclear power plants to the actual construction.
Action to take: Growth and early-stage investors may like shares here, as the company is still pre-revenue, which will change as reactors are built and brought online. Oklo’s growing contracts with companies for nuclear power can provide a sign as to future revenues.
For traders, shares are likely to keep trending higher over time. In the short-run, shares should continue to rebound along with the overall market. The August $35 calls, last trading for about $6.25, could see mid-double-digit returns or better depending on the strength of a rebound rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.