Oklo Inc. stock (NYSE:OKLO) are trading 3.97% higher in Wednesday's pre-market session, rebounding from the previous day's 5.29% decline, after BofA Securities upgraded the nuclear energy company to Buy from Neutral and raised its price target to $127 from $111.
The upgrade follows Oklo's announcement of a firm, binding agreement with Meta Platforms to develop a phased 1.2-gigawatt advanced nuclear campus in southern Ohio, marking a significant milestone for the small modular reactor developer.
The stock is currently trading at $89.93, reflecting a decline of $5.03 from the previous close, though the pre-market gains suggest renewed optimism around the company's execution capabilities. BofA's analyst noted that while the megawatt contribution from the Meta deal is modest in scale, the agreement represents a meaningful step forward by providing tangible proof of execution and counterparty commitment.
The willingness of Meta to commit capital years ahead of actual power delivery underscores the accelerating importance of nuclear energy as artificial intelligence workloads and data center demand continue their rapid expansion.
The partnership, announced on January 9, 2026, positions Oklo to develop nuclear power infrastructure specifically designed to support Meta's data centers in Pike County, Ohio. The agreement includes provisions for Meta to prepay for power and provide funding to advance the development of Oklo's Aurora powerhouses.
Pre-construction activities are scheduled to commence in 2026, with the first phase expected to become operational by 2030. This structured approach to financing and development reduces execution risk while validating Oklo's technology and business model in the eyes of one of the world's largest technology companies.
BofA's analyst highlighted that Oklo represents the most levered public small modular reactor name to data center demand, a positioning that becomes increasingly valuable as hyperscale technology companies race to secure reliable, carbon-free baseload power. Meta's broader nuclear strategy extends beyond Oklo, with the social media and AI giant entering agreements with TerraPower and Vistra to secure up to 6.6 gigawatts of clean energy by 2035. The multi-vendor approach demonstrates Meta's commitment to nuclear energy while also validating the competitive position of each selected partner.
The BofA upgrade adds to a growing chorus of analyst optimism surrounding Oklo's prospects. Wedbush previously raised its price target to $150 from $80 in September 2025, citing increased confidence in the company's nuclear growth strategy amid AI technology expansion. Cantor Fitzgerald followed in November 2025, elevating its target to $122 from $84, emphasizing Oklo's potential in deploying efficient, cost-effective energy solutions for the emerging AI economy.
Markets appear to be recognizing that Oklo's value proposition extends beyond simple power generation. The company's advanced reactor designs offer the potential for faster deployment timelines and lower capital costs compared to traditional nuclear facilities, attributes that align well with the urgent timelines technology companies face in expanding their AI infrastructure. The Meta agreement provides validation of this value proposition from a sophisticated counterparty with deep technical expertise and substantial capital resources.
Bull Case:
- BofA Securities upgraded the stock to Buy, raising its price target to $127.
- Secured a firm, binding agreement with Meta Platforms to develop a 1.2-gigawatt nuclear campus.
- The Meta partnership provides tangible proof of execution and strong counterparty commitment.
- Positioned as a key public SMR company levered to the high-growth data center and AI sectors.
- Multiple analysts, including Wedbush and Cantor Fitzgerald, have raised price targets, citing AI-driven energy demand.
- Oklo's advanced reactor designs may offer faster deployment and lower capital costs than traditional nuclear facilities.
Bear Case:
- The stock exhibits volatility, evidenced by a 5.29% decline in the previous trading session.
- The megawatt contribution from the initial Meta deal is considered modest in scale.
- Significant execution risk remains, with the first phase of the project not expected to be operational until 2030.
- The company is not currently profitable, as indicated by an N/A P/E ratio.
- Long-term success is heavily dependent on the sustained, rapid expansion of AI and data center energy needs.
The pre-market rally suggests that markets view the BofA upgrade and Meta partnership as catalysts that could drive sustained momentum for Oklo's stock, particularly as the intersection of nuclear energy and artificial intelligence infrastructure becomes an increasingly prominent investment theme in 2026.
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