Shares of Oklo Inc. (OKLO) experienced a sharp decline of 5.06% in intraday trading on Tuesday, despite the company announcing a potentially game-changing collaboration with Vertiv Holdings. The nuclear startup's stock took an unexpected downturn, surprising investors who were anticipating a positive market reaction to the news.

Earlier in the day, Oklo and Vertiv revealed their partnership to develop advanced power and cooling solutions for hyperscale and colocation data centers in the United States. The collaboration aims to leverage heat from Oklo's onsite nuclear power plants to drive Vertiv's cooling systems, promising significant enhancements in data center energy efficiency. This innovative approach could potentially revolutionize the power-hungry AI and high-performance computing sectors.

Adding to the positive sentiment, Citigroup raised its target price for Oklo from $30 to $68, signaling confidence in the company's future prospects. Initially, the market responded favorably, with Oklo's shares rising 1.6% to $63. However, this early optimism quickly reversed course, leading to the substantial intraday plunge.

The sharp decline in Oklo's stock price, despite the seemingly positive developments, may be attributed to several factors. Profit-taking could be a significant driver, considering the stock's impressive performance – up 19% year-to-date and having increased nearly sevenfold over the past 12 months. Additionally, some analysts have expressed skepticism about the feasibility of Oklo's ambitious regulatory and commercial timelines, which may have contributed to investor caution. As the nuclear energy sector continues to evolve, Oklo's volatile stock movement underscores the challenges and uncertainties facing innovative companies in this space.