In a year defined by AI momentum and infrastructure reboots, two companies—Advanced Micro Devices (AMD) and Oklo—are making waves for very different reasons. AMD continues to capture market share in the semiconductor landscape, riding demand for its AI chips, while Oklo, a nuclear energy startup, has surged on promising developments in clean power for the AI age.
Together, these stories offer a snapshot of a tech-fueled economy expanding at both the silicon and energy levels. Victor Grant, a senior financial analyst at Horizon28, breaks down what’s propelling each company—and the caution signs beneath the headlines.
AMD: Expanding in AI, With a Few Caveats
Investment bank TD Cowen recently raised its price target on AMD from $110 to $115, maintaining a “Buy” rating on the stock. The move comes as AMD gains market share in the PC and CPU server sectors, solidifying its position as a key player in the broader tech hardware race.
A major growth vector lies in AMD’s MI355 AI chip, which is expected to contribute significantly to revenue in the second half of 2025. With increasing demand from data centers and AI developers, AMD’s architecture continues to draw attention from investors looking for exposure to generative AI infrastructure.
However, it’s not all smooth sailing:
- The data center division underperformed in the first half of the year, forcing the company to take inventory-related write-downs.
- TD Cowen has trimmed its earnings and margin estimates for 2025 and 2026, citing higher input costs that could eat into profitability.
In the last month alone, AMD shares have gained 17%, although they are still down 6% over the past three months, reflecting broader volatility in semiconductor stocks.
Oklo: Betting Big on the AI Energy Pipeline
While AMD builds the brains of modern computing, Oklo is aiming to fuel it. The nuclear technology startup’s stock has soared over 30% this week, riding a wave of optimism after announcing a major step toward constructing its first fast-fission nuclear power plant.
Key updates include:
- Completion of borehole drilling for site characterization at its planned Idaho facility, targeting operational launch by late 2027 or early 2028.
- Despite having no revenue this quarter, Oklo reported a net loss of $9.8 million, narrowed from $24 million last year due to $4 million in investment income and a $4 million tax benefit.
Oklo’s long-term vision aligns closely with the AI sector’s hunger for low-carbon, high-output power sources. As cloud giants like Amazon, Meta, and others invest heavily in data centers, the energy draw is intensifying, and nuclear energy is gaining traction as a viable solution.
Oklo isn’t alone. Other nuclear-focused firms like:
- Constellation Energy (CEG): +31% over 12 months
- Vistra (VST): +68%
- NuScale Power (SMR): Tripled in value, alongside Oklo
Together, these names form a new vanguard in the push to decarbonize AI infrastructure, positioning themselves at the intersection of energy, climate, and compute demand.
Contrasting Fundamentals: Revenue vs. Potential
The divergent realities of AMD and Oklo highlight a central tension in today’s market: mature tech stocks with proven revenue streams versus high-risk infrastructure plays banking on future demand.
AMD’s Prospects
- Tangible sales in AI hardware
- Expanded market share in CPUs
- A credible roadmap tied to industry-standard product cycles
Yet, it faces rising challenges in:
- Cost control
- Profit margin compression
- Navigating inventory swings in cyclical markets
Oklo’s Momentum
- Positioned at the forefront of AI-driven energy demand
- Tapping into a niche where capital meets sustainability
- Growing interest from both public markets and private sector partnerships
But the risks remain high:
- No current revenue
- Significant construction timelines and regulatory hurdles
- Highly dependent on macroeconomic support and public policy alignment
AI’s Ripple Effect Across Industries
Both AMD and Oklo are responding to the same long-term macro trend: artificial intelligence’s rapid acceleration. For AMD, this means designing chips that train and deploy AI models faster. For Oklo, it means enabling the power grid stability needed to run those chips 24/7.
These parallel but distinct strategies reflect how AI is reshaping multiple sectors, from semiconductor design and software development to energy policy and utility infrastructure.
Investors are beginning to look beyond software and chips to ask: Who keeps the servers running? This deeper, more systemic thinking is helping nontraditional sectors like nuclear energy re-enter financial conversations once dominated by big tech alone.
Conclusion: Two Roads Into the AI Economy
The stories of AMD and Oklo represent two very different—but equally vital—pathways into the AI-powered economy. One is focused on the silicon backbone of computing, delivering products that support real-time growth in machine learning applications. The other is looking ahead, building the energy infrastructure necessary for those innovations to scale sustainably.
AMD offers a mix of steady innovation and cyclical risk, while Oklo presents high volatility with potentially transformative upside. Their trajectories, though different, share a common thread: positioning for a future where technology isn’t just smarter—it’s more power-hungry than ever.
As AI’s expansion forces investors to rethink what growth infrastructure looks like, both names remind us that the next wave of winners won’t just be found in software code or silicon wafers—but in the power and precision behind them.
