Amid the current renaissance in the nu energy industry, several stocks with exposure to this niche of the energy industry have logged considerable gains recently. Oklo (OKLO 4.
42%), for example, has been on an absolute tear, soaring 559. 6% as of this writing.
And there's plenty of reasons to believe that the stock can continue to rocket even higher as enthusiasm for nu energy increases. Image source: Getty Images.
What fueled Oklo's rapid rise over the past year While some growth stocks may log multibagger returns in a single year thanks to merely one catalyst, Oklo's gains stem from several factors.
Investors bid the stock higher in late 2024 when the company announced that it had received letters of intent from two data center customers for the deployment of its Aurora powerhouse small modular reactors.
In total, the potential deals can vide up to 750 megawatts in capacity across the United States.
The company also announced a nonbinding agreement with Switch -- a company that vides artificial intelligence (AI), cloud, and enterprise data centers -- to deploy 12 gigawatts in Aurora powerhouse jects through 2044.
The start of 2025 also ved to be fruitful for the stock.
With Sam Altman's OpenAI announcing the Stargate ject in January, investors raced to purchase Oklo, recognizing that the OpenAI plan to develop data center infrastructure could be a potential boon for the company.
More recently, the executive orders that President Donald Trump signed in May aimed at reinvigorating the nation's nu energy industry represented another catalyst for the stock.
After decades of Washington's disinterest in development of the nu industry, the Trump administration is ly enthusiastic its potential.
This nu energy stock can be a powerhouse over the long term For spective investors or current holders, it's reasonable to question whether the stock can continue its meteoric rise.
Simply put, the answer is a resounding yes. With the extraordinary computing demands that generative AI is placing on data centers, AI companies are heavily in data center infrastructure.
Re from Dell'Oro Group estimates that global spending is expected to soar from $430 billion on data centers in 2024 to $1. 1 trillion by 2029.
The interest that Oklo received last year from these developers will very ly extend through 2025 and beyond, helping to push the stock higher.
The political goodwill toward the nu industry will also benefit the stock. In early June, for example, Oklo notched another victory when the U.
Nu Regulatory Commission agreed to review a report from the company, which could receive regulatory apval for licensing operators for the company's Aurora powerhouse.
Oklo's gress with its subsidiary Atomic Alchemy represents another factor that can lift the stock.
In June, work began at a planned radioisotopic duction facility in Idaho -- just one of what management expects will be numerous jects that will expand its capabilities in commercial radioisotope duction.
While not as widely discussed as data centers and AI, the market for radioisotopic duction is expected to experience notable growth in the coming years.
According to Credence Re, the market is jected to soar at an 89. 7% compound annual growth rate from $5. 68 billion in 2024 to $953 billion in 2032. Is Oklo the right stock to charge up your portfolio.
Before clicking the buy button on the stock, it's imperative for potential investors to recognize that there are bound to be bumps in the road.
Disrupting an industry doesn't come without some volatility, and there's certainly no guarantee that Oklo will sper as management imagines it will.
So, only investors comfortable with the inherent risks should consider a position.
Those who have the resolve to stick with Oklo through the ups and downs may find themselves looking at a stock that vides a considerable return.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.