Bank of America Backs OKLO on META Nuclear Deal

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•  21 Jan 2026
 

•   META  
   
  +0.05%
•   OKLO  
   
  -3.25%

$OKLO is back in the Wall Street spotlight after Bank of America upgraded the stock from Neutral to Buy and raised its price target to $127 from $111. The move follows a binding agreement between Oklo and $META that could reshape how large technology companies secure long-term energy for data centers. For traders and investors, this is not just another analyst upgrade. It is a signal that Oklo story is shifting from pure vision to early execution, even though the company still has no revenues.

The agreement with Meta involves the development of an advanced nuclear campus with total capacity of up to 1.2 gigawatts, designed to power Meta data centers in southeastern Ohio over the next decade. According to Bank of America, the importance of this deal goes beyond the initial electricity output. A binding contract with a strategic customer of Meta size meaningfully changes Oklo risk profile at a very early stage of development. It offers proof that a major technology player is willing to commit capital and time long before regulatory approvals or final power purchase agreements are in place.

One of the most striking elements is Meta willingness to provide advance payments. Bank of America analyst Dimple Gosai highlighted that Meta has already transferred around $25 million to support nuclear fuel procurement, site preparation, and early development work. This level of upfront funding is unusual in the energy sector and reflects a high degree of trust in Oklo technology and team. For investors, early cash inflow provides operational flexibility and reduces the reliance on near-term capital raises, a key concern for pre-revenue companies.

From a balance sheet perspective, Bank of America notes that Oklo is relatively well positioned, with cash exceeding debt and an unusually strong current ratio. Still, the risks remain clear and visible. Oklo does not yet generate revenue, and its entire business model depends on regulatory progress and the successful execution of complex nuclear projects. Until approvals are granted by the U.S. Nuclear Regulatory Commission, the company cannot supply electricity or monetize its technology.

The Meta agreement also fits into a broader thesis. Bank of America views Oklo as one of the public companies most exposed to the surging energy demand from data centers, driven by artificial intelligence workloads. The company has disclosed a project pipeline of roughly 14 gigawatts, placing it in a unique position versus peers. Meta readiness to commit years in advance highlights the growing pressure on technology giants to secure stable, long-term power sources as AI infrastructure scales rapidly.

Oklo continues to advance on multiple fronts beyond Meta. The company recently signed an agreement with the U.S. Department of Energy to design and operate an experimental radioisotope facility, signaling progress from research into execution. It also completed reactor testing under the Pluto project with Los Alamos National Laboratory and received approval for a preliminary safety analysis for its Aurora fuel fabrication facility in Idaho, allowing construction to begin.

OKLO remains a controversial stock. Since going public, it has attracted intense investor interest, partly due to the association of its founder Sam Altman, CEO of OpenAI and former chairman of Oklo. The sharp rise, without current revenues, has fueled skepticism. Over the past 12 months, shares have surged around 180%, far outperforming major equity indices and raising questions about valuation and expectations.

Bank of America argues that some of these concerns are overstated. The firm points out that Oklo non-binding agreement with data center developer Switch, covering up to 12 gigawatts, remains valid despite Switch signing a separate geothermal deal. Among the 18 investment firms covering Oklo, roughly half rate the stock as Buy or Overweight, while the rest recommend Hold. Notably, there are no Sell ratings.

With a market capitalization of about $13.7 billion, and gains of 22% year to date, Oklo sits at the intersection of ambition and uncertainty. Volatility is likely to remain high as sentiment shifts with every regulatory update or project milestone. The key question is whether early commitments from players like META can translate into approved reactors, delivered power, and sustainable cash flows. Those willing to dig deeper may want to explore the full Oklo analysis to decide whether this nuclear bet fits their risk profile and time horizon.

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