Shares of Oklo Inc. (NYSE: OKLO) plummeted 5% in intraday trading on Wednesday, as investors reassessed the soaring valuations of energy companies riding the artificial intelligence (AI) wave. The decline comes amid growing concerns that the enthusiasm for AI-related energy stocks may be creating a bubble in the sector.

Oklo, a nuclear startup backed by OpenAI CEO Sam Altman, has seen its stock price surge by an astonishing 1,400% over the past year. The company, which is developing small modular nuclear reactors, now boasts a market capitalization of approximately $26 billion, despite generating no revenue in the past 12 months. This makes Oklo the largest U.S.-incorporated public company without revenue, according to data from S&P Global Market Intelligence.

The sharp pullback in Oklo's stock price follows a period of intense speculation and momentum trading. Earlier in the day, the company's shares had hit a new all-time high before reversing course. Analysts are now questioning whether the valuations of zero-revenue energy companies like Oklo are sustainable, especially given the long timelines for regulatory approval and revenue generation in the nuclear energy sector. With Oklo not expected to deploy its first nuclear power plant until late 2027 or early 2028, and substantial revenue not anticipated until 2028, today's sell-off may signal a shift in investor sentiment towards a more cautious approach to speculative energy stocks.