Jim Cramer Highlights Risks Behind Oklo’s Nuclear Plans

Oklo Inc. (NYSE:OKLO) is one of the stocks to watch as Jim Cramer looked at market rationality. Cramer said that the stock’s significant gains are because of a “pro-nuke” administration. He said:

“Oklo wants to build a small nuclear reactor that runs on nuclear waste. Love it. We need nuclear power, but it may take years to build, make that years and years, even if it’s a small-scale production. The stock’s up 247% year to date because this administration’s even more pro-nuke than the previous one. But man, it’s really hard to construct a nuclear reactor. The process takes forever, and the cost overruns are often endless. I’m not so sure why Oklo would be any different. Irrational.”Jim Cramer Highlights Risks Behind Oklo’s Nuclear Plans

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Oklo Inc. (NYSE:OKLO) develops advanced fission power plants to deliver clean and affordable energy at scale. In addition, the company focuses on nuclear fuel recycling technology that transforms waste into usable reactor fuel. Cramer mentioned the stock in a July episode and said:

“Until this market, I found it very hard to recommend anything… because historically, parabolic moves tend to explode in your face. But you know what? I violated my rule for this market simply because the moves are too big and the opportunities too frequent to pass on all of them. I don’t want you to miss making some big money because of a view that might no longer be relevant. Let’s take some stocks.

While we acknowledge the potential of OKLO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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