Strong demand for power-hungry data centers, particularly in view of Project Stargate, saw Sam Altman-backed nuclear stock OKLO (NYSE: OKLO) rally by 153% from January 1 to a February 7 all-time high (ATH) of $55.49.
By press time on April 2, however, the price of OKLO shares had dropped to $22.53. Although the nuclear stock is up 6.12% on a year-to-date (YTD) basis, current prices represent a 59.39% drop from its ATH.
The Sam Altman-backed stock remains a risky investment
The OpenAI CEO, who owns roughly 3.06% of the nuclear company, has an immense risk tolerance. Regular investors most likely do not.
Despite several tailwinds early in the year, such as Department of Defense partnerships and multiple memoranda signed with potential business partners, Oklo stock remains a risky bet — even at its present valuation.
As enticing as the company’s technological developments are, its losses are widening. The energy company’s last earnings call underperformed analyst expectations.
Moreover, in a market marked by volatility, macroeconomic concerns, and recession fears, investing in the Sam Altman-backed nuclear stock remains a risky proposition.
As of April, Oklo does not operate a single reactor — and the first of its projects, the 50 MW Aurora powerhouse, is slated to begin operating in late 2027 or early 2028.
Featured image via Shutterstock
