Oklo Inc and X-Energy Inc shares surged in after-hours trading on Tuesday following reports that the companies are joining a government program aimed at accelerating power plant development for AI data centers. The initiative, led by the Trump administration, seeks to address mounting concerns that the rapid expansion of data centers has pushed electricity prices higher across the country. Nuclear power is increasingly viewed as a critical solution to AI's soaring energy demands due to its ability to provide large-scale, carbon-free baseload power.

Program Details and Objectives

The $200 million program reportedly includes technology giants Microsoft and Nvidia. According to a Bloomberg report citing a reviewed document, the effort aims to fast-track the construction of new nuclear reactors. This strategy is designed to support the energy-intensive infrastructure required for AI data centers. The report suggests an official announcement regarding the program could be made as soon as Wednesday.

Market Reaction

Investors responded positively to the news, driving shares of both companies higher in extended trading. The following table details the stock performance at the time of publication:

Strategic Context

The collaboration highlights a growing trend where technology firms secure long-term energy agreements to stabilize power costs and meet sustainability goals. Beyond restarting existing facilities, there is increasing investment in small modular reactors. These advanced nuclear technologies are being developed to provide flexible, scalable power solutions that align with the continuous operational needs of modern AI infrastructure.

Oklo Inc shares fell 10.20% to $41.03 on Thursday, breaking beneath the prior 52-week low of $44.16 as sustained downtrends and risk-off positioning weighed on the nuclear energy developer. The breach of this support level is significant, transforming a floor that previously attracted buyers into potential overhead resistance for any future recovery attempt. The stock is now roughly 79% below its October 2025 peak of $193.84, reflecting a prolonged collapse in investor confidence.

Market leadership rotated toward defensive sectors, with Consumer Staples up 2.43% and Healthcare advancing 2.02%, while Technology sat at the bottom of sector rankings. This environment accelerated outflows from high-volatility names stuck in downtrends. Benzinga Edge assigns Oklo a momentum score of 4.17, a weak reading consistent with a stock where trend followers have little incentive to enter.

Technical Indicators Signal Weakness

The chart structure remains firmly bearish. Oklo is trading 19.4% below its 20-day moving average and nearly 49% below its 200-day moving average, indicating dense overhead supply. A death cross formed in February when the 50-day moving average crossed below the 200-day, reinforcing the downtrend. The Relative Strength Index (RSI) has dropped to 28.70, placing the stock in oversold territory. While this suggests near-term selling exhaustion, it does not guarantee a durable bottom given the broader bearish context.

Analyst Sentiment and Outlook

Despite the sharp selloff, the consensus rating on Oklo remains a Buy with an average price target of $94.94. However, recent analyst initiations reflect increased caution. Truist Securities started coverage on July 14 with a Hold rating and a $55.00 target. Guggenheim initiated with a Neutral rating in late June, and UBS lowered its target to $55.00 in mid-June. The disparity between the average target and the current trading price highlights the deterioration in market sentiment relative to analyst expectations. The next fundamental catalyst is the earnings report on Aug. 10, where analysts project a loss of 16 cents per share on minimal revenue.