Is It Too Late to Jump on the Nuclear Bandwagon?

Core Insights - A nuclear energy renaissance is occurring, with significant gains for early investors in companies like Lightbridge and NuScale Power, which have seen increases of nearly 202% and over 177% respectively since their year-to-date lows [1][2] Group 1: Market Trends - The Range Nuclear Renaissance Index ETF (NUKZ) has shown a price increase of 71% since its year-to-date low on April 8, and over 93% since its one-year low on September 6, 2024 [12] - The global AI data center market is projected to reach an estimated value of $13.62 billion in 2024, with a compound annual growth rate of 28.3% from 2025 to 2030, largely driven by AI technology adoption [5][8] - The U.S. Department of Energy forecasts that domestic energy usage from AI data centers will triple by 2028, increasing from 4.4% of total U.S. electricity in 2023 to between 6.7% and 12% [8] Group 2: Company Developments - Major companies like Amazon and Alphabet are investing in small modular reactors (SMRs) to meet the growing energy demands of AI data centers, with Amazon committing $334 million to an SMR feasibility study [6][8] - The largest holding in the NUKZ ETF is Cameco, the world's largest uranium miner, with a market cap of $33.44 billion, followed by Constellation Energy, which has secured a 20-year deal to supply emissions-free nuclear energy to Meta Platforms [11] Group 3: Investment Opportunities - The NUKZ ETF is positioned as a comprehensive solution for investors seeking exposure to the nuclear industry's growth, despite its relatively high expense ratio of 0.85% [10][9] - The ETF's current Relative Strength Index (RSI) reading of 49.55 suggests a neutral position, indicating potential for a pullback to around $55, which could present a better entry point for new investors [12][14]