Oklo Shares Retreat Amid Valuation Concerns, Despite Nuclear Sector Optimism

Oklo's stock slid 4% in midday trading, extending an earlier drop of 6.5%, as investors reassessed the nuclear energy startup's premium valuation. The decline follows Seaport Research's neutral rating downgrade, highlighting the disconnect between the company's unproven technology and its market capitalization.

Political tailwinds for small modular reactors (SMRs) had fueled a 2025 rally, but Oklo lacks both regulatory approval for its design and a clear commercialization pathway. Unlike peers with NRC-approved systems, the pre-revenue company embodies speculative momentum rather than operational maturity.

The pullback underscores a recurring market dynamic: speculative assets often overshoot fundamentals during HYPE cycles. While nuclear remains a compelling decarbonization play, Oklo's trajectory now depends on converting potential into tangible milestones.