Group 1: Mortgage Industry Changes - The mortgage industry is experiencing potential changes as the outlook on origination and servicing risks shifts, with a focus on increasing competition and lowering costs for consumers [3] - Federal Reserve Vice Chair for Supervision Michelle Bowman highlighted a significant decline in bank participation in the mortgage market, with banks originating only 35% of mortgages and servicing about 45% of mortgage balances as of 2023, down from 60% and 95% respectively in 2008 [4] - Proposed regulatory changes may include removing the requirement to deduct mortgage servicing assets from regulatory capital while maintaining a 250% risk weight on those assets, and increasing risk sensitivity of capital requirements based on loan-to-value ratios [4] Group 2: Impact on Non-Bank Lenders - Non-bank lenders have seen a significant rise in market share post-2008 financial crisis, and may face pressure to defend their margins against renewed competition from banks [5] - Major banks like Wells Fargo, Bank of America, and JPMorgan Chase may be incentivized to reclaim their market share in the mortgage sector, particularly for loans sold to or guaranteed by government-sponsored agencies [5] Group 3: Market Trends and Developments - The mortgage market is a key topic as the housing market begins to thaw, indicating a potential shift in dynamics that could benefit consumers [3] - The ongoing changes in the mortgage industry reflect broader trends in financial regulation and market participation, emphasizing the need for traditional lenders to adapt to a changing landscape [4][5]

Key TakeawaysJohnson & Johnson (JNJ) was found liable by a Pennsylvania jury for a woman's ovarian cancer, resulting in a $250,000 damages award.Amazon (AMZN)-backed nuclear startup X-energy (via its subsidiary TRISO-X) received U.S. approval for its advanced reactor fuel, a critical step for its small modular reactor (SMR) deployment.UBS (UBS) analysts forecast a massive surge in corporate buybacks, expected to reach $30-50 billion per week through the end of March.Global oil benchmarks settled slightly hi ...

Core Thesis - NuScale Power Corporation is positioned as a leader in small modular reactor (SMR) technology, with significant upside potential despite execution risks [3][4][5] Company Overview - NuScale Power Corporation specializes in small modular reactor technology and is the only U.S. company with NRC-certified SMR technology [3] - The company's stock was trading at $17.48 as of January 30, 2023, and $20.03 as of January 22, 2026, reflecting a 64% decline from its peak in October 2025, but a 104% increase year over year [3][4] Financial Position - The company has a market capitalization of $5.7 billion, zero debt, and approximately $700 million in cash, allowing it to sustain its development phase [4] - NuScale is currently burning $40–45 million per quarter and remains pre-revenue at scale [4] Investment Appeal - The core investment appeal lies in NuScale's VOYGR SMR platform, which features modular, factory-built nuclear solutions with passive safety systems and 36-month construction timelines [4] - The company has exclusive commercialization partnerships, including a significant agreement with ENTRA1 Energy and a memorandum of understanding with the Tennessee Valley Authority for up to 6 GW of capacity, marking the largest SMR deployment program in U.S. history [5] Market Dynamics - The growth narrative is supported by macro trends, including increasing electricity demand from AI and data centers, with hyperscalers investing tens of billions in nuclear-backed infrastructure [5] Risks and Challenges - The near-term outlook is limited by the lack of binding customer contracts, delays in Romania's investment decision, and the non-binding nature of the TVA agreement [6] - Execution risks are highlighted by the cancellation of NuScale's Carbon Free Power Project and ongoing dilution from equity raises [6] Valuation Considerations - Valuation outcomes are highly scenario-dependent, with bullish cases relying on contract conversions and commercialization progress, while bearish cases focus on delays, dilution, and competitive pressures [7]

Core Viewpoint - Energy Fuels' stock surged 14% following the Department of Energy's initiative to rebuild the U.S. nuclear fuel supply chain, reaching levels not seen since 2010 [1] Group 1: Company Performance - Energy Fuels leads the U.S. in uranium production and is developing a significant rare earth operation outside China [2] - Despite some gains being given up, Energy Fuels' stock is still up approximately 335% over the last 12 months [3] Group 2: Government Initiative - The Department of Energy aims to establish "Nuclear Lifecycle Innovation Campuses" to manage uranium enrichment, nuclear waste storage, and reprocessing [4] - This initiative represents a shift in Washington's approach to nuclear energy, focusing on reprocessing spent fuel and creating regional hubs for the nuclear lifecycle [6] Group 3: Economic Impact - Energy Secretary Chris Wright emphasized that the new program could drive innovation, economic growth, and create well-paying jobs in the U.S. [5] Group 4: Rare Earth Operations - Energy Fuels announced two significant feasibility studies that could transform its business model, with a Phase 2 rare-earth expansion project at its White Mesa Mill in Utah showing strong economics [7] - The project has a capital cost of $410 million, an estimated net present value of $1.9 billion, and a 33% internal rate of return [7]

Company Overview - Vistra Energy has a market cap of $54.2 billion and a diversified generation portfolio that includes natural gas, nuclear, and renewable assets [4] - Constellation Energy operates the largest nuclear fleet in the U.S., providing 24/7 baseload electricity essential for data centers [13] - Vertiv specializes in cooling systems, power distribution, and monitoring equipment for data centers, benefiting from the growth in AI infrastructure [8] Financial Performance - Vistra's recent quarterly earnings dropped 66.7% year-over-year, with revenue falling 20.9%, but forward-looking metrics indicate potential recovery driven by AI demand [1] - Vistra generated $5.21 billion in EBITDA over the trailing twelve months, with an operating cash flow of $3.99 billion [2] - Constellation's Q3 2025 revenue reached $7.18 billion, with a net income of $930 million and an EBITDA of $5.95 billion [14] - Vertiv's Q3 2025 revenue was $2.68 billion, up 29% year-over-year, with a net income of $398.5 million, reflecting a 122% earnings growth [9] Market Trends - The AI revolution is creating a significant demand for reliable and scalable power infrastructure, with data centers requiring substantial energy [6] - Training AI models like GPT-4 consumes as much electricity as 10,000 U.S. homes in a year, indicating a data center energy boom [6] - Companies like Constellation and Vistra are positioned to benefit from the increasing need for clean, reliable power for AI applications [7] Valuation Metrics - Vistra's trailing P/E is 58x, but the forward P/E is more reasonable at 16x, with earnings expected to jump 49% this year [2] - Constellation's P/E stands at 33x, reflecting market confidence in sustained demand for nuclear power [16] - Vertiv's valuation is aggressive at 68x trailing earnings, but a forward P/E of 33x suggests continued growth potential [11] Investment Outlook - Vistra could present a long-term opportunity if AI power demand continues to grow in Texas, despite recent earnings headwinds [1] - Constellation is viewed as a leader due to its ability to provide reliable baseload power, essential for AI data centers [17] - Vertiv shows the highest growth rates but faces execution risks as it scales production [17]

Core Viewpoint - The nuclear energy sector is experiencing a downturn due to significant delays in Oracle's AI infrastructure plans, impacting related companies like Oklo, NuScale Power, and Nano Nuclear Energy [1][5]. Group 1: Oracle's Infrastructure Delays - Oracle has postponed the delivery of critical data centers due to shortages in skilled labor and essential materials, raising concerns about its mounting debt and massive AI spending [2][3]. - Blue Owl Capital has opted not to support a $10 billion deal for Oracle's planned data center for OpenAI, indicating a lack of financial backing for the project [3]. Group 2: Impact on Nuclear Energy Stocks - Stocks of pre-revenue companies like Oklo and Nano Nuclear were previously trading at high valuations based on the expectation of imminent power purchase agreements, but are now declining as investors reassess the timeline for data center construction [5]. - The narrative that hyperscalers like Oracle and Microsoft are in urgent need of advanced nuclear reactors to power their data centers has been challenged by the delays, leading to a reevaluation of the "AI energy trade" [4][6]. Group 3: Future Outlook - While the nuclear renaissance is anticipated, it is now clear that its arrival will be dictated by construction schedules rather than rapid software updates, suggesting a longer timeline for the sector's growth [6].

Core Insights - The rise of artificial intelligence (AI) has significantly boosted the stock prices of companies like Nvidia and Palantir Technologies, which have increased by over 1,100% and 2,600% respectively since the release of ChatGPT at the end of 2022 [1][2] Industry Overview - A global nuclear renaissance is occurring, with nuclear power generation expected to grow at a compound annual growth rate of 14% from 2020 to 2024, driven by commitments from countries like the U.S. to significantly increase nuclear capacity by 2050 [5] - The future of nuclear power is focused on novel technologies that allow for smaller, more compact, and less expensive power plants compared to traditional designs [6] Company Focus: Nano Nuclear Energy - Nano Nuclear Energy is developing portable and stationary microreactors, including designs such as KRONOS, ZEUS, and LOKI, aimed at meeting the energy demands of AI [7] - The company has seen its shares rise over 90% this year, although it is still years away from profitability and currently has a market valuation of $2 billion [3][8] - In addition to microreactors, Nano plans to produce high-assay low-enriched uranium (HALEU) to fuel advanced reactors [9]

Financial Data and Key Metrics Changes - Third quarter revenue totaled $223 million, an increase of nearly 8% from the previous year, with organic revenue growth of 4.7% [7][20] - Adjusted EBITDA for the quarter was $52.4 million, up 14.7% year-over-year, with margin expansion contributing to the increase [8][21] - Adjusted free cash flow for the third quarter was $18 million, contributing to a year-to-date total of $53 million, leading to an increase in adjusted free cash flow guidance for 2025 to between $100 million and $115 million [8][25] - Adjusted EPS was $0.12 per share, a 50% increase compared to the same quarter last year [21] Business Line Data and Key Metrics Changes - The nuclear and safety segment revenue grew 9% to $144.6 million, with organic growth of 4.4% [23] - The medical segment revenue totaled $78.5 million, up 5.9%, with organic revenue growth of 5.2% [24] - Adjusted orders in the nuclear power end market grew 21%, reflecting strong demand across new builds, SMRs, and the installed base [10][16] Market Data and Key Metrics Changes - Year-to-date orders in the U.S. nuclear power end market increased by 44%, primarily driven by SMR activity [16] - The global nuclear fleet's average capacity factor reached 83% in 2024, indicating potential for increased operational efficiency [11] - The IAEA has raised its nuclear capacity forecast, expecting nearly a terawatt of nuclear capacity by 2050 [11] Company Strategy and Development Direction - The company is focused on broadening its nuclear power portfolio through acquisitions, including the recent Paragon Energy Solutions deal [6][14] - The strategy includes enhancing software solutions for regulatory compliance and expanding the U.S. presence with additional products and services [13][14] - The company aims to capitalize on the nuclear renaissance and is optimistic about the growth potential in the nuclear power sector [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power market's growth, citing strong order flow and favorable trends in SMR orders [9][10] - The medical segment is expected to normalize despite current pressures, with continued demand driven by aging populations and increased cancer incidence [35][37] - Management remains optimistic about achieving a level of equilibrium in the U.S. healthcare environment, which has been impacted by budgetary constraints [71][72] Other Important Information - The company expects to maintain a blended cost of debt of 2.8% into 2026, reflecting a significant improvement over the past year [8] - The company has a robust opportunity pipeline, with $285 million still to be awarded, of which $175 million is expected to be awarded by year-end [19][42] Q&A Session Summary Question: Regarding the commercial nuclear backlog and potential acceleration - Management indicated that the installed base and new utility scale builds are key drivers for future backlog growth, with government support expected to streamline project timelines [31][32] Question: Insights on the medical business amidst current pressures - Management remains positive about the medical business, citing strong demand drivers and expecting normalization in the RTQA segment [35][37] Question: Confidence in the $175 million pipeline and potential awards - Management expressed confidence in the pipeline, noting that timing is unpredictable but they feel they have a strong right to win on these opportunities [42] Question: Discussion on SMR opportunities and related projects - Management highlighted the expanding SMR opportunity set, with over 120 projects in development and significant government support aiding market evolution [46][62] Question: Pricing power trends in nuclear safety versus medical - Management noted that pricing power remains strong, particularly in the nuclear segment, while being more cautious in the medical segment due to current market conditions [68] Question: U.S. healthcare environment impacts on business - Management explained that Medicaid cuts and overall market noise have created a defensive CapEx environment, but they expect demand dynamics to normalize [71][72]

Financial Data and Key Metrics Changes - Third quarter revenue totaled $223 million, an increase of nearly 8% from the previous year, with organic revenue growth of 4.7% [6][19] - Adjusted EBITDA for the quarter was $52.4 million, up 14.7% year-over-year, with margin expansion contributing to the increase [7][20] - Adjusted free cash flow for the third quarter was $18 million, contributing to a year-to-date total of $53 million, leading to an increase in adjusted free cash flow guidance for 2025 to between $100 million and $115 million [7][24] - Adjusted EPS was $0.12 per share, a 50% increase compared to the same quarter last year [20] Business Line Data and Key Metrics Changes - Nuclear and safety segment revenue grew 9% to $144.6 million, with organic growth of 4.4% [22] - Medical segment revenue totaled $78.5 million, up 5.9%, with organic revenue growth of 5.2% [23] - Adjusted orders in the nuclear power end market grew 21%, reflecting strong demand across new builds, SMRs, and the installed base [9][15] Market Data and Key Metrics Changes - Year-to-date orders in the U.S. nuclear power end market increased by 44%, primarily driven by SMR activity [15] - The global nuclear fleet's average capacity factor reached 83% in 2024, indicating a positive trend for nuclear power utilization [10] - The IAEA has increased its nuclear capacity forecast, expecting nearly a terawatt of nuclear capacity by 2050 [10] Company Strategy and Development Direction - The company is focused on expanding its nuclear power portfolio through acquisitions, including the recent Paragon Energy Solutions deal [5][12] - The strategy includes enhancing software solutions for regulatory compliance and broadening product offerings in the nuclear power sector [12][13] - The company remains optimistic about the nuclear renaissance and its positioning to benefit from it [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power market's growth, citing strong order flow and government support for new projects [31][32] - The medical segment is expected to normalize despite current pressures, with continued demand for cancer care solutions [36][71] - Management anticipates a rebound in the RTQA business as funding dynamics stabilize [36] Other Important Information - The company expects to close the Paragon acquisition by year-end, which will enhance its U.S. presence and product offerings [5][12] - The company is actively managing supply chain risks and has developed strategies to mitigate exposure to critical commodities [65][66] Q&A Session Summary Question: Regarding the commercial nuclear backlog and project activity - Management indicated that the installed base and new utility scale builds are key drivers for future backlog growth, with government support expected to streamline project timelines [30][31] Question: Insights on the medical business amidst current pressures - Management remains optimistic about the medical segment, citing strong demand drivers and expecting normalization in the RTQA business [34][36] Question: Confidence in the $175 million pipeline and potential awards - Management expressed confidence in the pipeline, noting that timing for large opportunities can be unpredictable but remains optimistic about winning a significant portion [41] Question: Clarification on SMR opportunities and project details - Management highlighted the expanding SMR project pipeline and the importance of government support in accelerating market growth [44][61] Question: Pricing power trends in nuclear safety versus medical - Management noted positive pricing dynamics in the nuclear segment, while being more cautious in the medical segment due to current market conditions [68] Question: Impact of U.S. healthcare environment on business - Management discussed the effects of Medicaid cuts and overall market noise on capital expenditures, but remains confident in the underlying demand for their solutions [71]

Market Overview - Major U.S. indexes closed higher, with the Dow Jones Industrial Average up 0.3% at 47,706.37, the S&P 500 advancing 0.2% to 6,890.89, and the Nasdaq climbing 0.8% to 23,827.49 [1] Nvidia Corporation - Nvidia's stock surged 4.98% to close at $201.03, reaching an intraday high of $203.15 and a low of $191.91, with a 52-week high of $203.15 and a low of $86.62; in after-hours trading, the stock rose nearly 1.7% to $204.43 [1] - The company is in a "sweet spot" as its numbers outpace its valuation, with a trailing P/E ratio below its five-year average, indicating potential value for cautious investors [2] - CEO Jensen Huang cautioned that U.S. efforts to isolate China from advanced AI chips could backfire, emphasizing the need for balance to avoid losing "half the world's AI developers," while announcing new supercomputers for the U.S. Department of Energy and partnerships with several companies [3] Nokia Corporation - Nokia's shares skyrocketed 22.84% to $7.77, with a high of $8.19 and a low of $6.40; the stock's 52-week range is $8.19 to $3.91, and it rose 2.45% in after-hours trading to $7.96 [4] - The surge followed Nvidia's announcement of a $1 billion investment in Nokia, acquiring a 2.9% stake to collaborate on AI networking, enhancing Nokia's strategy for the AI supercycle [4] Bloom Energy Corporation - Bloom Energy's stock climbed 4.38% to close at $113.28, with an intraday high of $113.52 and a low of $105.84; the 52-week high is $125.75, while the low is $9.59, and the stock shot up nearly 20% to $136.01 in after-hours trading [5] - The company reported impressive third-quarter earnings, with a year-over-year revenue increase of 57.1%, totaling $519.05 million, surpassing analyst estimates of $424.98 million [6] Visa Inc. - Visa's stock slightly declined by 0.26% to $346.9, with a high of $349.89 and a low of $346.50; the 52-week range is $375.51 to $281.35 [7] - Despite the minor drop, Visa's fourth-quarter earnings exceeded expectations at $2.98 per share, slightly above the analyst estimate of $2.97, with quarterly revenue of $10.72 billion, beating the consensus estimate of $10.61 billion [7] Cameco Corporation - Cameco's stock soared 23.42% to $106.91, hitting a high of $110.16 and a low of $98; the 52-week high is $110.16, with a low of $35 [8] - The rise was driven by a major contract with the Trump administration to construct new nuclear reactors, boosting confidence in the nuclear sector [8][9]