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.
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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
