Key Takeaways NuScale Power and ENTRA1 plan up to 6GW, or 72 modules, with the first 12-module plant eyed for 2030.SMR sees demand from data centers and AI, while teaming with Oak Ridge on AI-driven fuel optimization.The 6GW plan lacks binding PPAs, and licensing or supply chain delays could derail timelines.NuScale Power (SMR) is planning a large nuclear deployment with its partner ENTRA1 Energy. This plan could reach up to 6 gigawatts (GW) of power capacity, equal to about 72 NuScale Power Modules, spread ...

Core Viewpoint - Vistra Energy is experiencing challenges due to proposed regulatory measures aimed at curbing electricity costs, which have negatively impacted its stock performance and independent power producer business [1][4][6]. Company Overview - Vistra Energy operates as an independent power producer, owning and operating power generation facilities to sell electricity to utility companies and directly to consumers [2]. - The company is one of the largest competitive power generators in the U.S., with over 44,000 MW of power-generating capacity, predominantly from natural gas (59%) [3]. Market Dynamics - The stock has declined 22% from its September peak, raising questions about potential investment opportunities [2]. - Proposed price caps by the White House and several governors could significantly impact Vistra's earnings, particularly affecting future PJM capacity auctions [4][6]. - PJM, a major grid operator, has indicated tightening energy supplies, prompting concerns about reliability and the need for accelerated energy deployment [5]. Auction and Capacity Details - Vistra has cleared 10,314 MW in the 2026/2027 PJM capacity auction at a price of $329.17 per MW-day, but future price caps may affect auctions for later years [6].

Core Insights - Microsoft has committed to purchasing enough renewable energy to match all its electricity needs, achieving this goal for the first time last year by contracting 40 gigawatts of new renewable energy supply [1][1][1] - The company aims to maintain this 100% renewable energy target during its expansion of AI-driven data centers, with plans to invest $50 billion by 2030 to support AI initiatives in the Global South [1][1][1] Renewable Energy Commitment - Microsoft has successfully contracted 40 gigawatts of renewable energy, with 19 gigawatts already supplied to the power grid [1][1] - The renewable energy contracts span 26 countries, and the remaining supply is expected to be delivered over the next five years [1][1] - The company’s cloud operations chief emphasized the importance of maintaining a 100% renewable energy target as the company grows [1][1] AI Expansion and Investment - Microsoft plans to invest $50 billion by 2030 to expand AI capabilities, particularly in countries across the Global South, primarily funding cloud and AI data centers [1][1] - The recent lifting of a moratorium on data center grid connections in Ireland is expected to help Microsoft meet significant demand for data centers in the region [1][1] - The company anticipates moving forward with previously stalled data center proposals outside Dublin, contingent on new regulatory policies [1][1]

Core Viewpoint - NuScale Power is focused on developing small modular reactors (SMRs) for power generation, facing significant competition and valuation concerns in the market [1][2][4]. Company Overview - NuScale Power is developing small modular reactors (SMRs) that are designed to be more efficient and flexible than traditional nuclear power plants [1]. - The company plans to develop up to 6 gigawatts of SMR capacity but faces challenges such as securing power purchase agreements and licensing [4][6]. Financial Performance - NuScale's stock was downgraded to "Hold" by Cowen & Co. at a price of $16.75, reflecting concerns about its valuation [2]. - The company's price-to-sales (P/S) ratio is 33.46, significantly higher than the industry average of 8.39, indicating potential overvaluation [2][6]. - Over the past six months, NuScale's shares have dropped by 54.1%, underperforming its peers [3][6]. - The stock is currently priced at $16.75, with a market cap of approximately $4.99 billion and a trading volume of 14,086,954 shares [5]. Competitive Landscape - NuScale faces stiff competition from companies like BWX Technologies, Constellation Energy, and GE Vernova, which have lower P/S multiples of 4.89, 3.48, and 4.66, respectively [4][6].

Group 1 - Major stock indices showed slight gains, with Dow futures up 0.08%, S&P 500 futures up 0.16%, and Nasdaq futures up 0.08%. Cryptocurrency stocks also rebounded, with Coinbase rising nearly 4% and Bitmine Immersion Technologies increasing by nearly 3% [1] - Power stocks experienced a pre-market rally, with Vistra Energy up 3.75% and Constellation Energy up 2.28%. Analysts from Bank of America indicated that recent sell-offs in this sector were due to policy misunderstandings rather than weak fundamentals, highlighting strong growth potential for specific power producers [1] - Chip stocks saw a pre-market increase, with Nvidia up 1.51% and AMD up 0.85% [2] - Amazon reported Q4 net sales of $213.39 billion, a 14% year-over-year increase, and AWS net sales of $35.58 billion, a 24% increase, marking the highest growth rate since the end of 2022. However, Amazon's projected capital expenditures for 2026 are expected to be around $200 billion, a 50% increase from 2025, which is significantly higher than Wall Street's expectations [5] Group 2 - Stellantis announced a write-down of €22 billion to adjust its electric vehicle strategy due to weak demand, leading to a stock price drop of over 20%. The company anticipates a net loss of €19 to €21 billion in the second half of 2025 and has suspended dividend payments [2] - Toyota raised its full-year outlook, projecting annual net sales of ¥50 trillion, up from a previous estimate of ¥49 trillion, and net profit expectations increased to ¥3.57 trillion from ¥2.93 trillion. The company also announced a leadership change, with CFO Koji Sato set to take over as CEO [3] - In Michigan, the Attorney General called for a re-evaluation of the power supply plan for Oracle's data center, citing concerns over the reliability of Oracle, OpenAI, and DTE Energy as partners, which could impact consumer electricity costs [4]

Group 1 - NuScale Power shares have increased by 40% year-to-date in 2026, reflecting strong investor interest in the nuclear energy sector [1] - The stock's recent performance contrasts with the historical performance of NuScale Power shares over the past few years, indicating mixed results for long-term investors [2] - The nuclear energy industry received a boost in September 2024 when Constellation Energy signed a power purchase agreement with Microsoft, enhancing interest in advanced nuclear companies like NuScale Power [4] Group 2 - In May 2025, President Donald Trump signed executive orders aimed at revitalizing the nuclear energy sector, which positively impacted NuScale Power's stock performance [5] - Market interest in NuScale Power remains strong as the company approaches commercial operations, with a $1,000 investment three years ago growing to $2,000 by January 23 [6] - NuScale Power is recognized as a leader in next-generation nuclear reactors, offering significant growth potential for investors willing to accept higher risks [8]

Market Overview - The market is currently in a consolidation phase, with limited swings until more information, such as earnings reports, is released [3][4]. - Anticipation is building for significant earnings reports from major companies, including the "Mag 7" and the Federal Reserve's decision [2][3]. Constellation Energy - Constellation Energy is viewed as a potential investment opportunity due to its recent price drop, which is seen as a chance to acquire shares at a lower price [5][6]. - The company is expected to benefit from the growing demand for energy to support AI technologies, with a projected return of 8% to 12% over the next 12 to 18 months [7][8]. - There is notable interest from larger companies in Constellation, which may provide momentum for future growth [9]. - The stock has experienced a nearly 20% decline recently, and technical analysis suggests it may test support levels around $230 [10][14]. SanDisk - SanDisk has been a top performer, with over 100% growth in January 2026, and is considered a momentum play with potential for double-digit returns in the short term [16][18]. - The stock is currently facing resistance levels, and there are concerns about a potential pullback due to low trading volume at current price levels [20][22]. - Earnings are expected soon, which could significantly impact the stock's performance [25]. ASML Holding - ASML Holding is seen as a long-term investment with a potential return of 10% to 14% over 18 months, while also being a momentum play [26][28]. - The stock has shown strong performance, up 31% year-to-date and 91% over the last 12 months, with a favorable chart setup indicating potential for further gains [30][31]. - Earnings predictions suggest a 20% increase, making it a key stock to watch in the upcoming earnings report [35].

Core Viewpoint - The market focus is shifting from geopolitical crises to macroeconomic factors, fiscal and monetary policies, and corporate earnings disclosures, with significant events expected in the upcoming "super week" including the Federal Reserve's interest rate decision and earnings reports from major tech companies [1][2]. Economic and Market Overview - The S&P 500 index experienced a slight increase of less than 0.1% on Friday but fell 0.4% over the week, while the Dow Jones Industrial Average dropped 0.7%. The Nasdaq Composite, primarily driven by tech stocks, also entered negative territory with a weekly decline of approximately 0.1% [2]. - A notable price surge occurred in the U.S. natural gas futures market, which rose by 75% over five trading days due to severe winter weather impacting over 1.5 million people [2]. - The World Economic Forum in Davos highlighted increasing divisions between the U.S. and its Western allies, alongside domestic political tensions that could lead to a government shutdown [2]. Federal Reserve and Monetary Policy - Investors expect the Federal Reserve to maintain the current interest rate range of 3.5%-3.75%, with a 98% probability of this outcome according to CME data. The focus will be on Chairman Powell's comments regarding inflation and employment [7][20]. - The nomination for the next Federal Reserve Chair is anticipated to be announced soon, with Rick Rieder from BlackRock emerging as a leading candidate [7][21]. Corporate Earnings and AI Investment - Major tech companies, including Microsoft, Meta, Tesla, and Apple, are set to report their earnings this week, which is crucial for assessing the ongoing AI investment narrative and its impact on market performance [5][10]. - Approximately 20% of S&P 500 companies will disclose quarterly earnings this week, with analysts believing that the tech sector, particularly the "Magnificent Seven," will drive earnings growth and market performance in 2026 [5][6]. AI and Technology Sector Insights - The "Magnificent Seven" tech giants, including Apple, Microsoft, Google, Tesla, Nvidia, Amazon, and Meta, are seen as key drivers of the ongoing bull market, benefiting from strong revenue growth linked to AI investments [6][11]. - The upcoming earnings reports from these companies will be critical in determining whether their substantial AI-related expenditures translate into real productivity gains and significant market transformations [10][12]. Storage and Semiconductor Industry - Companies like SanDisk, Western Digital, and Seagate, along with major memory chip manufacturers Samsung and SK Hynix, are expected to report earnings that will significantly influence the market outlook for AI infrastructure and storage demand [10][12]. - The demand for high-performance storage solutions is surging due to the rapid expansion of AI data centers, with analysts increasingly optimistic about the financial outlook for storage companies [17]. Geopolitical and Regulatory Developments - The Senate Agriculture Committee is set to hold hearings on the CLARITY Act, a significant regulatory proposal for the cryptocurrency market, which could impact the legislative landscape for digital assets [8]. - Political tensions in the U.S. are escalating, with potential implications for government funding and stability, particularly in light of recent violent incidents involving federal law enforcement [18][19].

Group 1: Market Overview - The focus of the market is shifting from geopolitical crises to macroeconomic factors, fiscal and monetary policies, and corporate earnings disclosures as the last trading week of January 2026 approaches [1] - The S&P 500 index experienced a weekly decline of 0.4%, while the Dow Jones Industrial Average fell by 0.7% [2] - The Nasdaq Composite index also entered negative territory, with a slight decline of approximately 0.1% for the week [2] Group 2: Corporate Earnings and Key Events - Major tech companies, including Tesla, Apple, Microsoft, and Meta, are set to report their earnings this week, which is crucial for the ongoing bull market [5][6] - Approximately one-fifth of the S&P 500 companies will announce quarterly earnings, with a particular focus on the "Magnificent Seven" tech giants [5][10] - The earnings reports from storage giants like SanDisk, Western Digital, and Seagate, as well as semiconductor leaders like Samsung and SK Hynix, are expected to significantly impact market trends [6][10] Group 3: AI Investment and Market Sentiment - The AI investment narrative is at a critical validation point, with significant debt issuance by tech giants to fund AI initiatives, altering the investment-grade credit market landscape [9] - The market is increasingly focused on whether substantial AI-related expenditures can translate into real productivity growth and significant changes in the real world [10][11] - The ongoing "AI faith" among global investors is a powerful bullish driver for the stock market, with expectations that this trend will continue to support the bull market [11][12] Group 4: Federal Reserve and Monetary Policy - Investors expect the Federal Reserve to maintain the current interest rate range of 3.5%-3.75%, with a high probability of this decision [7][20] - The upcoming Federal Reserve meeting is anticipated to provide insights into future inflation, employment, and interest rate paths, especially in light of potential leadership changes [7][20] - The nomination of the next Federal Reserve chair is expected to be announced soon, with Rick Rieder emerging as a leading candidate [7][21] Group 5: Geopolitical Factors and Market Reactions - The geopolitical landscape remains tense, particularly regarding the Greenland territorial dispute, which has implications for U.S. relations with European allies [3] - The recent surge in natural gas futures prices, driven by extreme winter weather, highlights the volatility in commodity markets [2] - The potential for a government shutdown in the U.S. due to political gridlock poses risks to market stability and liquidity [18][19]

Core Insights - The VanEck Uranium and Nuclear ETF has increased by 75% over the past year, rising from approximately $84 in January 2025 to $146.60 currently, with total assets of $3.6 billion, focusing on uranium miners and nuclear utilities due to a renewed interest in carbon-free energy sources [1] Fund Holdings - The ETF's top holdings include Cameco at 8.6%, Constellation Energy at 6.6%, and uranium miners such as Uranium Energy Corp and Denison Mines, with 45% of the portfolio in uranium mining and enrichment companies and 20% in nuclear utilities [2] Uranium Price Dynamics - The performance of the ETF is closely tied to uranium prices, which have risen from around $90 per pound in early 2025 to nearly $100 recently, influenced by supply constraints and increased demand from reactors [3] - Kazakhstan's Kazatomprom has indicated production challenges, while Western utilities are seeking long-term contracts outside of Russian supply chains, which could further impact uranium prices [3] Price Volatility - Uranium prices are known for their volatility; the last spike above $100 per pound occurred in 2022, followed by a decline due to lagging reactor restarts and inventory absorption [4] - Investors are advised to monitor monthly uranium spot price reports, as a sustained price above $100 could support current valuations, while a drop towards $80 may negatively affect the miners in the ETF [4] Holdings Performance Divergence - There is a notable divergence in the performance of the ETF's holdings, with Uranium Energy Corp increasing by 164% over the past year, while Constellation Energy has decreased by 6%, indicating different pressures faced by uranium miners and nuclear utilities [5] - The fund's 36% annual turnover suggests active management, with potential shifts in exposure between miners and utilities based on market conditions [5] Alternative Investment Options - For investors seeking concentrated uranium exposure, Sprott's URNM ETF offers a more focused investment with 90% in uranium miners and physical uranium, compared to the broader approach of VanEck's ETF [6] Key Monitoring Factors - The primary factor to watch is the momentum of uranium spot prices above $100 per pound, along with the ETF's rotation between miners and utilities as reactor construction timelines become clearer [7]