Key Points
A potential nuclear power deal with Saudi Arabia indicates a changing landscape.
American nuclear companies could earn a windfall from the program.
Domestically, Oklo also has potential to benefit greatly from data center power needs.
Two bits of news have shares of Oklo (NYSE: OKLO) surging higher today. The developer of advanced nuclear reactors is looking to benefit from the vast power needs of growing artificial intelligence (AI) data centers, but another growth path may be coming, too.
Oklo stock jumped as much as 7.7%, and remained up by 3.6% as of 11:27 a.m. ET.
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Nuclear at home and abroad
A U.S. Department of Energy initiative aimed at speeding up reactor development for AI data centers has investors jumping into related company stocks today. Oklo is one supplier reportedly joining big technology firms in a $200 million plan to help power AI data centers in the U.S.
That wasn't the only news helping push Oklo shares higher today, though. Separately, other reports said that President Trump has approved a landmark agreement with Saudi Arabia. The agreement would see the U.S. support the creation of a nuclear power program and see American companies build the civilian program.
According to reports, administration officials said this could potentially allow for uranium enrichment within the kingdom's territory. The newly established agreement, set to span 30 years, could be valued at tens of billions of dollars. It aims to position American companies at the forefront of developing Saudi Arabia's nuclear infrastructure.
Oklo and other U.S. nuclear firms could be big winners, but investors should remember the stock is still speculative and that no concrete orders have been announced. The potential for future business is still boosting Oklo stock today.
Howard Smith 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.