Dare I Add Oklo To My Top 30? Of Course I do!

Oklo is part of the data centre infrastructure boom. They supply sustainable nuclear energy. Demand is insatiable, which is driving the shares explosively higher. Analysts are saying that the euphoria is overdone, which is triggering a reaction in the share price. My experience is that what appears to be euphoria in the short term can evolve into a breakout over time. Nuclear energy presents a significant opportunity in a world that is desperate for inexhaustible supplies of clean energy.

It is similar to what is happening in data centres. The old global technology infrastructure doesn’t cut it in a world desperate for more and faster computing power to process exponentially increasing amounts of data. Similarly, the old energy infrastructure was built around abundant supplies of fossil fuel, and that doesn’t cut it in a world preoccupied with the effects of climate change and desperate for more energy.

As usual, I have no idea what the right price is for Oklo, but volatility combined with staggered purchases means your entry price should work in time. I also expect that if you pile in now, it will still work out in the end. Time is on the side of these exciting growth shares.

My usual feeling with shares in these exciting companies is better in than out. If you buy ahead of a serious reaction, wait for a new buy signal and buy some more. The important thing is to keep faith with the shares in a world of day trading, momentum-chasing investors who pile in and pile out like shoals of fish being pursued by dolphins.

Trump is a favourite hate figure among the bien-pensants (my name for everybody who disagrees with me), but there is a dynamism about his government which is incredibly refreshing.

We’re starting today’s update by highlighting a wave of federal actions that are accelerating momentum behind advanced nuclear technologies and how Oklo is extremely well positioned to benefit. Over the past quarter, we’ve seen exceptional policy movement from sweeping executive orders to major legislation and national infrastructure strategies. Together, these actions reflect a coordinated federal push to speed up deployment of advanced nuclear technologies, strengthen domestic fuel supply chains and enhance U.S. energy independence.

For Oklo, this shift is highly beneficial. These aren’t just favorable signals, they’re concrete steps that support faster licensing, faster deployment and better project economics for first-of-a-kind deployments. The next few slides will unpack the most significant drivers, the executive orders, the One Big Beautiful Bill and the Federal AI action plan, all of which align directly with Oklo’s licensing strategy, customer partnerships and long-term cost advantage. The executive order signed earlier this year marked a historic shift in federal policy toward advanced nuclear. These executive orders build on legislation from the last Congress and administration to clearly recognize civil nuclear energy as a national and economic security priority. That designation alone reshapes the policy landscape and unlocks access to key government assets, including alternative fuel materials that do not require further enrichment.

When used in advanced reactors like Oklo’s, these material stockpiles could be made into fuel for more than 3 gigawatts of powerhouses. Just as important, these orders direct the DOE (the United States Department of Energy) and NRC (US Nuclear Regulatory Commission) to move faster, streamlining regulatory reviews, reforming reactor testing and targeting 3 operational advanced reactors by July 2026. It’s rare to see this level of alignment across permitting fuel access and deployment.

The executive orders go beyond signaling support. They include clear directives that align directly with Oklo’s strategy. First, they revitalize the domestic nuclear fuel supply chain with a specific emphasis on recycling. Oklo is one of the few fast reactor companies positioned to use downblended alternative fuel materials, which don’t require enrichment. This fuel, combined with the industry- leading advances we are making in fuel recycling can give us a significant structural advantage.

Second, the orders prioritize deployment of reactors at national security locations, including AI data centers and defense sites that aligns with where our customers are heading and where our small scalable powerhouse designs excel. Third, the orders mandate licensing reform, capping fees and setting an 18-month review window for new reactors. That level of regulatory clarity and speed will accelerate Oklo’s path to market and strongly supports our combined license strategy. And finally, these orders direct DOE to accelerate reactor testing and target 3 operational advanced reactors by July 2026. That’s an aggressive timeline and one Oklo could qualify to help deliver on.

The One Big Beautiful Bill signed into law in July delivers a suite of policy wins that are directly aligned with Oklo’s business model. First, it preserves robust investment and production tax credits through 2033 that then phase out through 2036. These credits improve our project economics and offer additional certainty for early-stage deployment. Second, the bill strengthens the loan program’s office, establishing the energy dominance financing program. This is important because it provides access to long-term capital for projects that can’t yet tap traditional debt markets like first-of-a-kind deployments.

Third, it accelerates NEPA, the National Environmental Policy Act reviews by setting strict deadlines for environmental assessments and impact statements. That helps reduce permitting delays and improves timeline confidence across our project portfolio. And finally, the bill allows for 100% bonus depreciation for assets that begin construction by 2029 and are in service by 2033. That gives us the ability to capture meaningful tax benefits as we build out fuel and manufacturing capabilities.

The federal government’s AI action plan also released in July adds a major new dimension to the demand landscape for advanced nuclear. The plan calls for a rapid expansion of AI infrastructure, including high-security data centers and resilient domestic energy systems to support them. It explicitly recognizes that achieving AI dominance requires building new sources of reliable, dispatchable power like advanced nuclear reactors.

Jacob DeWitte, CEO and co-founder, Oklo, Q2 2025, 11 August 2025

Contrast this with Ed Miliband waffling about wind farms and heat pumps. I have for years thought the obvious answer to the world’s desire for unlimited supplies of clean energy was to go nuclear. If we can make nuclear submarines, why can’t we harness nuclear power for all sorts of things? This seems to be exactly what is happening in the US and creates a powerful tailwind for companies like Oklo.

So let us have a look at what Oklo is doing.

Our mission at Oklo has always been clear to deliver clean, reliable and affordable energy at a global scale. Our co- founder started this company with the belief that advanced nuclear could play a transformative role in the world’s energy future. That meant rethinking the entire model from how we design reactors to how we license, fuel and operate them. That vision continues to guide us today, and it’s now clearly aligned with where policy, technology and customer demand are headed.

Oklo’s competitive edge comes from the intersection of 3 key strategies: our business model, our sizing philosophy and our technology. First, we build, own and operate our powerhouses, selling power under long-term contracts. That creates recurring revenue and enables us to move more efficiently through the regulatory process. Second, our small scalable design allows us to deploy assets quickly, match customer demand in an incremental fashion and significantly tap into existing supply chains with factory fabrication, which reduces site complexity, cuts cost and supports faster rollout.

And third, our technology is based on proven liquid metal fast reactor designs with over 400 reactor years of operating history behind it worldwide. That gives us a deep technical foundation with built-in performance and safety benefits. Importantly, it enables us to move directly into commercialization without the need for a costly and time-consuming demonstration plant. And finally, I really can’t emphasize this point enough. It provides flexibility for Oklo to use fresh HALEU, recycled fuel and down blended alternative fuel for our powerhouses.

Together, these advantages position us to deploy at speed and scale with a structure built for long-term growth. This past quarter, we made meaningful headway across all elements of our milestone framework from licensing and project execution to field development, customer growth and strategic partnerships. We advanced our NRC engagement, completing Phase 1 pre-application readiness and saw our licensed operator topical report formally accepted for review. We also took another step towards deployment at scale by selecting Kiewit as our lead constructor for the first Aurora powerhouse at INL [Idaho National Laboratory].

[HALEU is an acronym for High-Assay, Low-Enriched Uranium, which is a type of nuclear fuel with an enrichment level of the fissile U-235 isotope between 5% and 20%. It is a critical component for most advanced nuclear reactors, including small modular reactors and microreactors, as it allows for smaller, more powerful, and more efficient reactor designs with longer operating cycles. The current global HALEU supply is primarily based in Russia, leading to a geopolitical and national security concern, which several countries, like the UK and the U.S., are working to address through domestic HALEU production programs.  

Why HALEU is important

Enhanced Reactor Performance: HALEU’s higher concentration of U-235 allows for more compact reactor designs and longer fuel cycles, improving efficiency and reducing waste. 

Advanced Reactor Technologies: It is essential for the development and deployment of next-generation nuclear technologies like small modular reactors (SMRs) and microreactors. 

National Security and Energy Independence: Many countries are investing in HALEU capabilities to reduce their reliance on Russian nuclear fuel supplies, enhancing energy security and supply chain stability. 

Global Context and Programs

U.S. HALEU Program: The U.S. Department of Energy’s HALEU Availability Program aims to support the development of domestic HALEU supply chains, including enrichment, deconversion, and transportation services. 

UK’s HALEU Programme: The UK government is also investing in HALEU capabilities by 2031 to support advanced reactors and establish itself as a supplier of this specialized fuel. 

Commercial Supply: Currently, the only commercial-scale HALEU production is in Russia, making the development of alternative suppliers a strategic priority. 

Key Applications

Advanced Reactors: HALEU is the fuel of choice for most U.S. and other international advanced reactor designs. 

AI Overview]

Richard Bealmear, CFO, Oklo, Q2 2025, 11 August 2025

Oklo is an early-stage business, which explains the dynamic share price. A year ago, the shares were $5.70 and the business was little more than a twinkle in the eye, but like the quantum computing companies, Oklo is focused on what it does, and things are starting to happen. It is often the way that the share price moves ahead, and then the company makes progress to justify what the shareholders are anticipating. This is normal behaviour, but can be hard to understand for those unused to the ways of the stock market.

Critical to Oklo’s progress is access to crucial raw materials.

Fuel is one of the most important inputs for advanced nuclear, and it’s one of the areas where Oklo has built a significant strategic advantage. Our design enables a differentiated fuel strategy built around 3 complementary sources: access to government stockpiles, commercial supply partnerships and long-term recycling capabilities. This approach provides greater flexibility, cost control and resilience than traditional fuel models.

Jacob DeWitte, CEO and co-founder, Oklo, Q2 2025, 11 August 2025

Oklo is operating at the forefront of a sea change in attitudes to nuclear energy.

There’s a growing consensus that nuclear power is fundamental to the country’s energy future, but historically, costs and time delays have held it back. Nuclear power is already the most land and material-efficient energy source, but decades of legacy design, complex safety systems and custom-built construction have driven up both costs and timelines. At Oklo, one of the reasons we’re in a strong position today is the disciplined approach we’ve taken to design and cost engineering from the outset.

Jacob DeWitte, CEO and co-founder, Oklo, Q2 2025, 11 August 2025

Oklo has a great story, which should benefit the shares as it unfolds over time.

We also completed a successful marketed first follow-on equity transaction on June 12, generating $460 million in gross proceeds, providing the company with additional cash on hand to deliver our enhanced growth agenda. And as a result of the capital raise, we ended second quarter with approximately $683 million in cash and marketable securities on our balance sheet.

To wrap up, I want to briefly highlight why we believe Oklo is one of the most compelling opportunities in the advanced nuclear industry. We’re deploying proven fast reactor technology in a compact, scalable format designed to reduce cost, complexity and deployment timelines. We are vertically integrated across power generation, fuel recycling and radioisotopes, unlocking multiple high- value revenue streams.

Our business model is built around long-term power sales, delivering recurring revenue, margin visibility and customer stickiness. We are pursuing superior economics through standardized design, repeatable deployment and recycled fuel that drives long-term capital efficiency and competitive levelized cost of energy. Our 14-gigawatt pipeline spans data centers, defense, utility and industrial customers, reflecting strong and growing demand. And we’ve developed a streamlined licensing strategy aligned with our business model backed by regulatory expertise, a repeatable collo path [?] and accelerating federal tailwinds. At its core, Oklo is more than a technology company. We’re building an energy platform to serve the world’s next era of growth.

Jacob DeWitte, CEO and co-founder, Oklo, Q2 2025, 11 August 2025

The key to Tesla’s success was to take costs out of manufacturing electric cars by automating and simplifying car production. Shades of Henry Ford’s ‘any colour as long as it is black’ mantras for the 1920s Model T. Something similar is happening in defence with companies like Anduril (unquoted] and Palantir eliminating costs for unmanned warfare. Now, Oklo and others are applying similar thinking in the nuclear energy industry, going micro and taking out massive chunks of cost.

Share Recommendations

Oklo OKLO (new entry to the Top 30, taking the number to 34)

I am out all day tomorrow visiting my old college in Oxford and lunching with the provost (Worcester College). For those who don’t know, and why should you, I am 80 tomorrow. So old, but I still fancy the ladies like mad. They don’t fancy me, of course, but half a loaf is better than none.

There is a lot to read, and the quotes can be a little bit heavy going, like doing set homework. My solution is to buy some shares and then read the story to find out why that might be a good idea.