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Analysts shrug off Oklo’s wider loss
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Analysts shrug off Oklo’s deeper-than-expected loss

They’re giving the company — which still has zero revenue and widening losses — credit for getting crucial support and approvals from the US government.

Shares of high-flying retail favorite Oklo rose Wednesday after the developer of modular nuclear reactors reported a wider-than-expected loss Tuesday after the close.

Analysts seemed to give the company credit for making regulatory progress on its plan to develop smaller modular reactors that use different technology than traditional water-cooled nuclear power plants.

These so-called “experimental breeder reactors,” or EBRs, use liquid metal — in Oklo’s case, liquid sodium — to cool metallic fuel made of uranium alloys, rather than the traditional form of fuel used in nuclear reactors: ceramic-covered uranium pellets contained in fuel rods that are cooled with vast amounts of water, making them nearly impossible to build compactly.

The company is currently building its first product, a reactor it calls Aurora, at the US Energy Department’s primary nuclear energy research and development center, the Idaho National Laboratory. The reactor is expected to be completed sometime in late 2027 or 2028. The company broke ground on the project in September.

Analysts gave Oklo credit for hitting recent milestones, including receiving Department of Energy approval of a safety plan for the facility it will use to make the fuel for its reactor in only two weeks, under a DOE pilot program designed to speed reviews directed by Trump administration executive orders.

The approval of the safety design “marks a key milestone,” wrote analyst Jed Dorsheimer of William Blair, adding that the approval is “reinforcing its leadership in next generation nuclear fuel.”

Bank of America analyst Dimple Gosai wrote that the “rapid two-week approval of Oklo’s INL Fuel Fabrication Facility NSDA reflects strong agency backing.”

Separately, in its earnings results Oklo highlighted that it received approval for its Pluto A test reactor to pursue authorizations for building its experimental reactors through the Department of Energy without having to wait for full commercial approvals of its reactors from the Nuclear Regulatory Council.

“Oklo continues to see regulatory acceleration for its projects with the DOE authorizing an approval to construct and operate a nuclear facility creating a modern pathway to get new nuclear plants built quickly with operating facilities having an option to transition to NRC licensing and oversight for full commercial operations,” Wedbush Securities analyst Dan Ives wrote.

While the company’s close ties to the Trump administration — the current secretary of energy is a former Oklo board member — are seen as an advantage by the market, analysts note that the money-losing, zero-revenue company remains a speculative investment.

“While we recognize the inherent risks of a pre-revenue business, we maintain our outperform rating, viewing Oklo as best-in-class and a leading beneficiary of structural growth in nuclear energy and sustained federal support,” Dorsheimer wrote.

Shortly before midday in New York, Oklo shares were up more than 420% in 2025.

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Microsoft is in talks to shift its custom chip business to Broadcom from Marvell, The Information reports

The Information’s profile of custom chip specialist Broadcom includes this tidbit:

“And now Microsoft is also in talks to design future chips with Broadcom, which would involve Microsoft switching its business from Marvell, another maker of custom chips, according to one person involved in the discussions.”

Shares of Marvell Technology briefly dipped into the red after this report hit the wires, but then pared that drop to trade modestly higher. The company codesigns the Maia line of ASICs for Microsoft that are custom-built for Azure. Microsoft is its second-biggest hyperscaler client, behind Amazon.

Marvell tumbled on a ho-hum earnings report earlier this week before going on to surge after CEO Matt Murphy offered a $10 billion revenue target for its upcoming fiscal year, which was above analysts’ expectations.

Perhaps this is a bit of Information fatigue, given how Microsoft was quick to deny a report from the outlet earlier this week about how the tech giant lowered its sales targets for AI products.

markets

Memory stocks soar as AI supporting cast repairs damage from steep November declines

There’s not much rhyme or reason to it, but memory stocks are ending the week with a stellar showing.

Shares of high-bandwidth memory specialist Micron, hard disk drive sellers Seagate Technology Holdings and Western Digital, and flash memory company Sandisk are all rising today.

Three of these stocks dropped about 20% in November as credit risk seeping into AI and a downturn in speculative momentum stocks weighed on the theme, with Sandisk faring the worst.

Micron, Western Digital, and Seagate have all since rebounded strongly and are about 5% or less from reclaiming all-time highs, while Sandisk has made up the least ground.

While GPUs (and, more recently, TPUs) get most of the headlines, data centers also need a boatload of memory chips that store information and feed it to those processors.

markets

Ulta soars as Q3 beat sparks flood of price target hikes

Ulta’s latest makeover is happening on Wall Street. Shares leapt Friday morning as analysts hiked their price targets after the beauty retailer topped Q3 estimates and raised its full-year outlook after the bell Thursday.

Earnings came in at $5.14 per share, handily beating analyst expectations of $4.64. Revenue also topped estimates at $2.86 billion, compared with the $2.72 billion expected. Ulta has benefited from resilient beauty spending, even as consumers pull back elsewhere and hunt more aggressively for discounts.

Ulta now expects full-year net sales of about $12.3 billion, up from a prior forecast of $12.0 billion to $12.1 billion. The retailer also lifted its earnings outlook to $25.20 to $25.50 per share, up from $23.85 to $24.30 previously. This marks Ulta’s second straight quarter of hiking its sales and profit forecast. Analysts are taking note:

  • Goldman Sachs maintained its “buy” rating and raised its price target to $642 from $584.

  • DA Davidson maintained its “buy” rating and raised its price target to $650 from $625.

  • JPMorgan maintained its “outperform” rating and raised its price target to $647 from $606.

  • Baird maintained its “outperform” rating and hiked its price target to $670 from $600.

  • Telsey Advisory maintained its “outperform” rating and raised its price target to $640 from $610.

  • Piper Sandler maintained its “outperform” rating and raised its price target to $615 from $590.

  • Canaccord Genuity maintained its “neutral” rating and raised its price target to $674 from $654.

markets

Southwest cuts its earnings outlook on lost revenue due to government shutdown

Another big four airline has put a price tag on the 43-day government shutdown.

Southwest Airlines on Friday said lower revenue due to a temporary decline in demand during the shutdown, together with higher fuel costs, will ding its annual earnings before interest and taxes by between $100 million and $300 million. The carrier lowered its full-year EBIT outlook to $500 million, down from a prior range of $600 million to $800 million.

According to Southwest’s filing, bookings have returned to previous expectations following the end of the shutdown. Its shares dipped down about 1% in premarket trading.

The carrier joins Delta Air Lines in assigning a cost to the government closure. Earlier this week, Delta said the shutdown would cost it $200 million in the fourth quarter.

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