OKLO, NNE, SMR Stocks In Focus: Wedbush Picks Oklo, Nano Nuclear As AI Power Demand Fuels Bull Case, Warns On NuScale

• Wedbush gave Oklo a $36 price target and Nano Nuclear an $18 target, both with ‘Outperform’ ratings. 
• Wedbush gave NuScale an ‘Underperform’ rating and $5 price target, citing a lack of funded reactor orders.
• All three stocks face steep year-to-date losses and weakening retail sentiment. 

Oklo Inc. (OKLO) and Nano Nuclear Energy Inc. (NNE) stocks are drawing attention after Wedbush initiated coverage with ‘Outperform’ ratings, citing rising electricity demand from AI infrastructure as a potential long-term growth driver for nuclear energy. However, the firm took a bearish stance on NuScale Power Corp. (SMR), citing concerns over its commercial progress.

While Nano Nuclear stock traded over 4% lower overnight, ahead of Tuesday, Oklo and NuScale Power stocks edged down 0.4% and 0.7%, respectively.  

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Wedbush Sees Long-Term Potential In Nuclear Energy

Wedbush analyst Seth Basham launched coverage of six companies in the advanced nuclear space, reflecting growing interest in the sector as AI infrastructure and rising electricity consumption create new opportunities for nuclear power.

Wedbush believes the nuclear industry could benefit from a prolonged investment cycle as power demand increases alongside AI development and broader electrification. The firm also sees newer reactor technologies as an opportunity to improve the financial appeal and safety profile of nuclear energy projects.

Among the companies receiving positive assessments, Oklo stock earned an ‘Outperform’ rating with a $36 price target, implying a 53% upside potential from the stock’s last close. Nano Nuclear stock also received an ‘Outperform’ recommendation, with an $18 target implying 64% upside potential.

NuScale Faces Commercialization Concerns

However, Wedbush differed on NuScale Power stock, initiating coverage with an ‘Underperform’ rating and a $5 price target, implying a 6% downside potential.

Although NuScale holds a regulatory advantage through its small modular reactor design certification from the U.S. Nuclear Regulatory Commission, Basham questioned its commercial progress. The analyst pointed out that the company has yet to secure a binding order backed by financing for its reactor modules despite nearly two decades of operations.

The firm's assessment also highlighted the cancellation of the Carbon Free Power Project in 2023, which it identified as NuScale's only meaningful customer opportunity. 

NNE, SMR, OKLO Stocks: Retail View 

On Stocktwits, retail sentiment around OKLO stock remained ‘extremely bearish’. NNE stock slipped to ‘neutral’ from ‘bullish’, while sentiment around SMR stock dropped to ‘bearish’ from ‘bullish’

So far this year, SMR, NNE and OKLO stocks have declined between 54%  and 67%.  

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