Core Insights - Riverwater Partners' "Micro Opportunities Strategy" reported solid absolute returns in Q3 2025 but lagged behind the benchmark due to not keeping pace with the strong market rally [1] - The strategy continues to focus on quality companies amid a volatile environment [1] Company Highlights - Uranium Royalty Corp. (NASDAQ:UROY) is highlighted as a key stock in the investor letter, showing a one-month return of 0.28% and a 52-week gain of 60.36% [2] - As of December 15, 2025, UROY's stock closed at $3.59 per share, with a market capitalization of $491.152 million [2] Industry Context - UROY outperformed in Q3 2025 due to increasing global momentum towards nuclear power and rising uranium prices, with spot uranium prices climbing into the high $70s to low $80s per pound [3] - The company benefits from a royalty model that provides exposure to uranium revenues without operational or capital risk, holding interests in premium projects like Cameco's McArthur River and Cigar Lake mines [3] - UROY is positioned as a low-risk investment vehicle for long-term exposure to the nuclear energy resurgence, leveraging structural advantages in the uranium bull market [3] Hedge Fund Interest - UROY was held by 6 hedge fund portfolios at the end of Q3 2025, an increase from 5 in the previous quarter, indicating growing interest [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4]

Core Insights - Google has signed a transformative nuclear power purchase agreement (PPA) with NextEra Energy to secure power from the Duane Arnold Energy Center, which is set to restart by 2029 [1][4] - This agreement is part of a broader trend among major tech companies, including Microsoft and Meta, to secure nuclear power to meet the increasing energy demands of AI data centers [2][10] - The U.S. electricity demand is projected to grow at an annual rate of 4% to 5%, prompting tech companies to lock in energy supplies and benefiting leading power producers [13] Google and NextEra Energy Collaboration - Google has entered into a 25-year PPA to purchase power from the 615-megawatt Duane Arnold Energy Center in Iowa, which was shut down in 2020 [4][5] - NextEra Energy plans to restart the facility by the first quarter of 2029, and Google will purchase a portion of the plant's output [4][5] - Google has secured nearly 3 gigawatts of power from NextEra Energy, indicating a significant commitment to future energy supply [8] Broader Industry Trends - Similar nuclear power agreements have been made by Microsoft and Meta, contributing to a resurgence in nuclear energy in the U.S. [2][10] - Microsoft signed a 20-year deal with Constellation Energy to restart the Three Mile Island Unit 1, which will provide 845 MW of output starting in 2028 [10][12] - Meta has also secured a 20-year deal with Constellation for power from the Clinton Clean Energy Center, starting in mid-2027 [12] Future Energy Demand - The combination of AI data centers, electric vehicles, and new manufacturing facilities is expected to drive unprecedented electricity demand in the U.S. [7] - Leading power producers like NextEra, Brookfield Renewable, and Constellation are positioned to benefit from this surge in demand, potentially generating strong returns for investors [13]

Core Argument - Constellation Energy has the potential to reach a share price of $600+ due to significant revenue growth and valuation adjustments, with current revenues between $23–25 billion and a projected increase to $35–40 billion by the late 2020s [3][8] - The stock currently trades at around 30 times earnings, which is high for utilities but justified by its growth trajectory and nuclear leadership, with earnings per share expected to rise from approximately $9.50 to $18–20 in the coming years [4][8] Primary Growth Catalysts - The company's nuclear fleet provides a stable, carbon-free baseload energy source, essential for meeting the increasing demand from AI and data centers, which are willing to pay a premium for reliability [5] - Constellation is diversifying its energy portfolio through acquisitions like Calpine, which adds natural gas and geothermal capabilities, enhancing revenue streams [5][6] - Supportive federal and state policies for clean energy and the recognition of nuclear power's role in decarbonization bolster Constellation's long-term prospects [6] Financial Outlook - If revenue growth accelerates towards the mid-$30 billion range and earnings potential doubles, the share price could rise significantly, validating nuclear energy's role in America's clean energy future [8][9] - Operational efficiency improvements and increased utilization are contributing to upward trends in margins, positioning Constellation as a key player in the clean energy transition [6] Risks and Considerations - Regulatory challenges and the politically sensitive nature of nuclear energy could impact operations, alongside execution risks related to the integration of acquisitions and management of the nuclear fleet [7][9] - The company's high valuation leaves less room for error, with potential earnings misses or demand declines posing risks to its bullish outlook [7][9]