Dismiss nuclear commercialization doubts with the Meta Protocol! Bank of America upgrades Oklo (OKLO.US) to "Buy" with a target price of $127.

Bank of America Corp has upgraded its stock rating on nuclear energy startup Oklo (OKLO.US) from "Neutral" to "Buy", with a target price raised from $111 to $127. The reason is that they have reached a binding agreement with Meta (META.US) to co-develop a phased 1.2 gigawatt advanced nuclear energy park. BofA analyst Dimple Gosai stated that the agreement includes customer prepayments, providing funding for early development before the final power purchase agreement is signed. Despite its small contribution in megawatts, it provides tangible evidence of execution and commitment from the partners. The analyst added that investors are increasingly seeking concrete evidence of advanced nuclear energy moving from concept to execution, and the agreement with Meta "provides just that proof". The analyst mentioned that they still see potential in Oklo's business model and believe the company is a target with the most leverage on data center demand among listed companies, with their "small modular reactor" (SMR). Meta is willing to invest capital years in advance before completion and grid connection, formal power purchase agreement (PPA) signing, or obtaining a license, highlighting the importance of nuclear energy in the background of accelerated growth in AI and data center demand. The analyst believes that recent news about data center operator Switch adding geothermal supply has somewhat overshadowed the positive factors that should have benefited Oklo. Given Switch's significant presence in the announced 14 gigawatt project pipeline, he pointed out that the geothermal PPA is relatively small and aligns with Switch's strategy of multiple technology paths in parallel. He mentioned, "Compared to the load demand of several hundred megawatts or even gigawatts in Switch's parks, we see this as just incremental supplementation." The analyst stated that this does not replace the potential project of around 12 gigawatts under the understanding memorandum (MoU) with Switch.