Micro Nuclear Firm Oklo Has Even More Upside After 99% Surge

This has been a very generous and forgiving bull market. Keep a close eye on the charts, catch a high beta, tech or AI-related stock when the charts are flashing a buy signal, create a plan and follow through.

Thanks to the charts, we’ve had good fortune with:

SoFi SOFI, which has climbed 117% over the past six months (read about SoFi here).

Tesla TSLA, which is up 27% in the past month (recent analysis here).

Robinhood HOOD, which has gained 158% over the past six months (analysis here).

Tempus AI TEM up 45% in the past month (latest analysis here). 

Oklo's Eye-Popping Returns

Frankly, those figures pale in comparison to the recent performance of Oklo Inc. OKLO. The Santa Clara-based provider of micro-nuclear reactors has vaulted to a 47% gain over the past five sessions, and a 99% gain over the past month.

On Monday, Oklo broke ground on its first-ever power plant, called the Aurora, at Idaho National Laboratory. The Aurora is a sodium-cooled fast reactor, using fast-moving neutrons to sustain a chain reaction. 

Oklo Climbs the Charts

Oklo’s chart is also fast-moving. The stock formed a series of rounded bottoms (shaded yellow) over the summer before breaking out on September 10 (point A). Since we recommended this stock on July 21 (point B), just over two months ago, Oklo has gained 222%.

Oklo’s rally has been accompanied by a massive increase in volume (shaded green), an indication that institutions are the driving force behind this move.

According to its relative strength index (RSI) reading, Oklo is overbought. Oklo is flashing 88.37 (point C), on a scale that calculates measurements above 70 as overbought.

While an overbought reading may sound concerning, note that this stock’s RSI was also overbought in May, when that reading peaked just below 84 (point D). Oklo shares have nearly tripled since then.

Power Surge

Demand for power has exploded as artificial intelligence reshapes the world of business. The training and deployment of advanced AI models occurs mainly in data centers, which house servers, storage systems and networking equipment.

According to a study by the Environmental and Energy Study Institute, demand for power from data centers increased from 11 gigawatts in 2018 to 17 gigawatts in 2022. By 2030, that figure is expected to explode to 130 gigawatts.

That’s good news for energy providers in general. Despite its spectacular recent gains, there is more upside ahead for Oklo.

At the time of publication, Ponsi was long OKLO, TSLA, TEM, SOFI and HOOD.