Oklo Stock Dips After Winning DOE Contracts, Rivals Fall Further

Oklo stock jumped 6% then dropped after the US Department of Energy announced it won three contracts for small modular nuclear reactors. The company's subsidiary Atomic Alchemy also won a contract. However, eight other companies not named Oklo won contracts as well. The news was seen as less impressive than initially thought, leading to the stock reversal.

Oklo Inc. (NYSE: OKLO) stock experienced a significant price movement on July 2, 2025, following the announcement that the company and its subsidiary, Atomic Alchemy Inc., had been selected for three U.S. Department of Energy (DOE) reactor pilot projects. The stock initially jumped 6% but subsequently reversed course, ending the day down by 1% [2].

The DOE's Reactor Pilot Program aims to demonstrate criticality in at least three test reactors by July 4, 2026, coinciding with America’s 250th birthday. Oklo secured two projects, while Atomic Alchemy won one. The program is part of a broader federal initiative to modernize and streamline nuclear licensing and demonstration, made possible through executive orders signed in May 2025 [3].

While the news initially seemed promising, the stock's reversal can be attributed to the fact that eight other companies, not named Oklo, also won contracts under the same program. This diluted the perceived exclusivity of Oklo's achievements, leading to a more subdued market reaction [2].

Oklo's selection underscores the company's strategic importance in the U.S. nuclear sector. Jacob DeWitte, co-founder and CEO of Oklo, emphasized the DOE's commitment to "ushering in a new era of building new nuclear in America" by leveraging its capabilities to enable nuclear innovators. The program provides a "sweeping injection of urgency to meet the moment and unleash American nuclear innovation" [3].

Oklo's stock performance highlights the complexities and uncertainties inherent in the nuclear energy sector. While the company's achievements are notable, the market's reaction reflects a more nuanced understanding of the competitive landscape and the broader context of the DOE's initiative.

References:
[1] https://energynews.pro/en/oklo-selected-for-three-pilot-projects-by-u-s-department-of-energy/
[2] https://finance.yahoo.com/news/why-oklo-stock-popped-then-190702486.html
[3] https://www.investing.com/news/stock-market-news/oklo-stock-rises-after-securing-three-doe-reactor-pilot-projects-93CH-4188680