Oklo Inc. (OKLO) stock surged 5.27% in the premarket session on Thursday, as nuclear stocks rallied on re-evaluation of potential electricity demand from AI data centers.

The rally came after concerns emerged over the impact of Chinese AI startup DeepSeek on the projected surge in U.S. electricity demand and tech spending. Investors re-calibrated their positions in the nuclear energy space, anticipating a potential shift in demand projections.

Power producers were among the biggest winners in the S&P 500 last year, fueled by optimism about ballooning demand from energy-intensive data centers scaling AI operations. However, DeepSeek's new technology has cast doubt on these projections, leading investors to reassess the potential demand for electricity from nuclear sources like Oklo Inc.