11:19 AM EDT, 08/26/2025 (MT Newswires) -- Oklo ( OKLO ) is well positioned to address the looming data center power crunch driven by artificial intelligence, BofA Securities said in a note Tuesday.

The investment firm said Oklo ( OKLO ) is building next-generation small nuclear reactors and will sell firm, long-duration power directly to customers.

Power demand from AI could reach 500 terawatt hours annually by 2027, 2.6 times today's levels, with shortages threatening up to 40% of data center sites. Nuclear is regaining momentum with the support of the US Department of Energy and data center operators, positioning Oklo ( OKLO ) to capture rising demand.

BofA highlighted that of the roughly 50 small modular reactor developers it tracks, Oklo ( OKLO ) has the largest publicly disclosed customer pipeline, with more than 14 gigawatts of agreements or about 30% of the global pipeline, including a 12-gigawatt deal with Switch, data center developer.

The firm said Oklo's ( OKLO ) vertically integrated build-own-operate model is more capital intensive but maximizes long-term economics. The company has also secured initial access to high-assay low-enriched uranium from US Department of Energy stockpiles, reducing near-term fuel risk.

BofA started coverage of Oklo ( OKLO ) with a buy rating and $92 price objective.

Oklo ( OKLO ) shares were up 6.5% in recent trading.

Price: 75.84, Change: +4.65, Percent Change: +6.54