DOE's $2.7 Billion Uranium Investment Ignites Nuclear Stock Rally: Oklo Surges 15%

The nuclear energy sector experienced its best trading day in months on Monday after the U.S. Department of Energy announced a landmark $2.7 billion investment to strengthen domestic uranium enrichment capabilities over the next decade. The announcement sent shockwaves through the market, with Oklo Inc. surging nearly 15% to close at $89.58—its strongest session since early December.

Breaking Russia's Uranium Monopoly

The DOE's investment addresses a critical vulnerability in America's energy infrastructure: its dependence on Russian uranium. Russia currently dominates global production of high-assay low-enriched uranium (HALEU), the advanced fuel required by next-generation nuclear reactors. With a law banning Russian uranium shipments taking full effect by 2028, the United States faces an urgent need to build domestic supply chains.

The contracts, awarded to American Centrifuge Operating, General Matter, and Orano Federal Services, are tied to milestones for enrichment services. The DOE also granted $28 million to Global Laser Enrichment, partially owned by Canadian uranium producer Cameco, to advance its enrichment technology development.

"The United States cannot afford to rely on adversarial nations for the fuel that will power our energy future. This investment puts America on the path to true energy independence in the nuclear sector."

— Department of Energy statement

Why Oklo Soared

Oklo's 15% rally wasn't merely sympathy trading—the company has direct exposure to the HALEU supply question. The advanced nuclear startup, backed by Sam Altman and aiming to revolutionize small modular reactor deployment, has explicitly warned investors that its powerhouses are expected to rely on HALEU fuel. Any difficulty accessing HALEU could materially impact Oklo's ability to manufacture fuel and produce power.

The DOE announcement directly addresses this concern. By establishing domestic HALEU production capacity, the government is removing one of the primary obstacles to Oklo's commercial deployment timeline.

Oklo is currently building its first Aurora powerhouse at the Idaho National Laboratory, with the company targeting a milestone of demonstrating criticality by July 4, 2026. The DOE recently selected Oklo for its Reactor Pilot Program, which aims to bring at least three advanced reactors online outside national labs by the same date.

The Nuclear Stock Surge

Oklo wasn't alone in Monday's nuclear rally. The announcement lifted the entire sector:

• NuScale Power Corp. (SMR): Gained 15% as investors recognized the broader implications for small modular reactor deployment
• Nano Nuclear Energy (NNE): Added 12% on its position in advanced nuclear technology
• Cameco Corp. (CCJ): Rose on its ownership stake in Global Laser Enrichment, a recipient of DOE funding
• Centrus Energy (LEU): Advanced on its role as parent company of American Centrifuge Operating, a primary contract recipient

The sector-wide gains reflect growing investor conviction that nuclear energy will play an expanded role in America's energy mix, driven by both climate concerns and the insatiable power demands of artificial intelligence data centers.

The AI Power Connection

The nuclear renaissance isn't happening in a vacuum. Data centers powering artificial intelligence workloads are consuming unprecedented amounts of electricity, and tech giants are scrambling to secure reliable, low-carbon power sources. Microsoft, Google, and Amazon have all announced nuclear power initiatives in recent months.

Small modular reactors like those Oklo and NuScale are developing offer potential advantages for data center applications: they can be sited closer to demand, scaled to match power requirements, and provide consistent baseload power regardless of weather conditions that affect solar and wind generation.

The DOE's uranium investment essentially removes a supply chain bottleneck that could have delayed these deployments. By ensuring domestic HALEU availability, the government is clearing the path for advanced reactors to meet the AI industry's power demands.

Wall Street's Nuclear Conviction

Analyst sentiment on Oklo remains constructive despite the stock's volatility. Thirteen analysts currently cover Oklo, with eight maintaining Buy ratings and five at Hold. The consensus price target stands at $130.10, implying significant upside from current levels even after Monday's surge.

The bull case centers on Oklo's first-mover advantage in microreactor deployment, its relationship with the DOE, and the growing recognition that advanced nuclear must be part of any realistic clean energy transition. The bear case focuses on execution risk—Oklo has yet to generate commercial power, and the path from demonstration project to scaled deployment involves considerable technological and regulatory uncertainty.

Looking Ahead

The $2.7 billion DOE commitment represents the largest federal investment in uranium enrichment in decades. But it's just one piece of a broader nuclear revival gaining momentum in Washington.

The bipartisan support for nuclear energy that emerged in recent years shows no signs of fading. Both parties recognize the strategic imperative of energy independence from Russia and China, and nuclear power offers a path to reliable, low-carbon electricity that neither solar nor wind can fully replicate.

For investors, Monday's rally in nuclear stocks may be just the beginning. As advanced reactor companies move from development to deployment, and as the domestic uranium supply chain scales up to meet demand, the sector could see sustained interest from both institutional and retail investors seeking exposure to the clean energy transition.

Oklo's 15% surge on a single day of news demonstrates how sensitive these stocks remain to policy developments. The next catalysts to watch: Oklo's July 4 demonstration deadline, NuScale's first commercial reactor deployment, and any additional government support for the nuclear fuel cycle.