Oklo's Stock Could Have Massive Upside, but Is It Worth the Risk?

Key PointsMcKinsey estimates that nearly $7 trillion will be spent on data centers by the end of the decade.Oklo doesn't generate any revenue today, and it may be a long time before it turns a profit.Its valuation may seem a bit high for an unproven business. 10 stocks we like better than Oklo ›Oklo (NYSE: OKLO) is a stock that investors see plenty of potential in, as the nuclear technology company plans to build powerhouses that can be built next to data centers. One of the companies it has partnered with is social media giant Meta Platforms, with the two recently announcing an agreement that will involve Oklo developing a 1.2 gigawatt power campus in Ohio.That's just one example of the potential growth opportunities Oklo can tap into. And they'll continue to pop up as hyperscalers invest more into data centers and expand their artificial intelligence (AI) capabilities. There is, however, a risk that comes with investing in Oklo today, given that it's still in the very early stages of its growth. And it's due to those concerns that the stock has been struggling of late -- it's down about 60% in just the past six months.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Is it worth investing in Oklo stock today, given the risk that it possesses?Image source: Getty Images. Why Oklo can be a captivating investmentIf Oklo's powerhouses can play a key role in helping to solve the need for rising energy due to AI and more data centers being built around the world, the stock could indeed have considerable upside. Data centers are in high demand due to AI, and analysts at McKinsey project that by 2030, the required investment in them will total approximately $6.7 trillion, as tech giants continue to spend heavily on all things AI-related.Now, imagine Oklo's powerhouses providing energy to most or even some of these data centers. It's easy to see now how the business could be much more valuable in the future than its current $7.9 billion market cap. The opportunity is massive due to AI, and with its powerhouses being relatively small in size and offering clean energy solutions, there's no shortage of potential for Oklo.The big question investors need to ask themselves about Oklo's stock todayInvesting in a company that's in its early growth stages is going to inevitably come with risk. For Oklo, however, the key question is whether there's simply too much risk today. The company doesn't generate any money, and its first powerhouse may not be up and running for at least another year. Its ability to scale quickly, without heavily burning through cash along the way, will be a big test for the business.The opportunity is massive for the company, but its valuation is already a bit high for what's still an unproven business today. You might miss out on some gains by waiting, but I think that's the best approach with the stock today. If it proves to be the real deal, you can still profit from huge gains down the road. But by rushing in and buying the stock now, you'll be taking on significant risk.Should you buy stock in Oklo right now? Before you buy stock in Oklo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Oklo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $501,381!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,012,581!* Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 31, 2026. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.