Key Takeaways Tech-crushing, Meta and Microsoft partner ANET stock is a long-term AI winner. Nuclear energy giant Constellation is powering AI data centers and expanding into natural gas. Artificial intelligence spending is fueling the Wall Street bull market as big tech bets big on power-hungry AI data centers and beyond. The AI hyperscalers, including Amazon, Meta, and others, are projected to spend roughly $400 billion in capex in 2025 alone. Global data center infrastructure spending is expected to reac ...

Core Insights - Oklo Inc. (OKLO) stock has surged nearly 100% in a month due to the artificial intelligence-driven energy boom, with increased energy demand from AI hyperscalers and U.S. government initiatives supporting nuclear energy revival [1][7] - Wall Street acknowledges nuclear energy as a vital component of the AI trade and the expanding energy and infrastructure spending boom, positioning Oklo as a potential long-term winner despite its recent overvaluation [2] - Rolls-Royce (RYCEY) is highlighted as a stable investment in the next-generation nuclear energy sector, leveraging its expertise in nuclear propulsion systems to develop small modular reactors (SMRs) [3][4] Oklo Inc. (OKLO) - Oklo's stock price has reached around $130 per share, reflecting a significant increase in value, but it is considered potentially overheated with high RSI levels and trading well above its 50-day moving average [2][8] - The company is currently pre-revenue, which adds to the investment risk despite its recent performance [2] Rolls-Royce (RYCEY) - Rolls-Royce has experienced a remarkable 1,700% increase in stock price over the past three years, driven by a new CEO focused on profitability and growth [5][17] - The company has reinstated dividends and announced a £1 billion share buyback program, indicating strong financial health and commitment to returning value to shareholders [15] - Rolls-Royce is projected to grow its adjusted earnings per share (EPS) by 50% in FY25 and 17% in FY26, with an EPS forecast of $0.45 for FY25, up from $0.26 in FY24 [16] Industry Outlook - The U.S. government aims to quadruple nuclear energy capacity by 2050, reflecting a strategic partnership with the UK to enhance nuclear energy and AI collaboration [10] - Generative AI platforms are significantly increasing energy demand, with U.S. electricity demand expected to grow by approximately 75% by 2050, highlighting the critical need for expanded energy generation capacity [9] - Rolls-Royce has secured a significant contract with the British government to build SMRs, positioning itself as a leader in the nuclear energy sector [11][14]

NuScale Power's stock has traded in a wide range over the past year, with investors left to wonder if the stock is a risk or an opportunity. Shares of NuScale Power (SMR -2.28%) have been as low as roughly $7 a share over the past 52 weeks. They have risen as high as $51 or so. And in between those two extremes there was a nearly 58% drawdown, even though the stock is up a whopping 400% over the past year. And this opportunity is hitting at roughly the same time as a massive uptick in demand for electricity ...

Core Viewpoint - The UK government has backed Rolls-Royce to build the country's first small modular nuclear reactors (SMRs), marking a significant shift towards nuclear energy and investment in energy security [1][2][3]. Group 1: Government Support and Investment - The UK government will invest £14.2 billion ($19.2 billion) to construct the Sizewell C power station, reinforcing its commitment to nuclear power [2]. - The decision to support SMRs is part of a broader strategy to enhance energy security and create jobs, with the potential to support up to 3,000 jobs [2][3]. Group 2: Industry Impact - Rolls-Royce views the government's decision as a "very significant milestone" for its SMR business, indicating strong future growth prospects [4]. - The SMRs are expected to power approximately 3 million homes once operational in the mid-2030s, contributing to the UK's energy landscape [3].

Industry Overview - President Trump signed an executive order to boost the nuclear energy industry, aiming to overhaul the Nuclear Regulatory Commission and expedite the development of new nuclear power reactors [1] - The executive order is expected to catalyze a resurgence in the nuclear sector, potentially leading to increased demand for nuclear energy [1] Company Insights: NuScale Power - NuScale Power's stock surged following the executive order, reaching all-time highs, although the company currently lacks a marketable product [4][6] - The company is developing small modular reactors (SMRs), which are cheaper and quicker to build compared to traditional nuclear plants, and can be transported closer to population centers [7] - A significant milestone for NuScale will occur in 2025 when RoPower decides on purchasing six SMRs, which could pave the way for future contracts [8] Company Insights: Constellation Energy - Constellation Energy is the leading nuclear power producer in the U.S., with a capacity of 22.1 gigawatts, significantly higher than its nearest competitor [10] - The company sells power under long-term fixed-rate agreements, allowing it to benefit from rising power rates [11] - Constellation is investing in clean energy, including a partnership with Microsoft to restart the Three Mile Island Unit 1 nuclear plant, and is exploring SMR opportunities [12][13] - The company anticipates over 13% compound annual growth in adjusted operating earnings through 2030, with potential for accelerated growth if it finalizes its acquisition of Calpine [14] Company Insights: Cameco - Cameco is positioned to benefit from increased uranium demand as the U.S. aims to quadruple its nuclear energy capacity by 2050 [15] - The company highlighted that nearly 70% of the uranium requirements for future nuclear reactors remain uncovered, indicating a need for approximately 3.2 billion pounds of uranium by 2045 [17] - As one of the largest uranium producers, Cameco is experiencing increased long-term contracting activity and holds a 49% stake in Westinghouse Electric, enhancing its competitive edge [18] - Cameco has a strong financial position, having paid dividends annually since 1991, with a 33% increase last year, making it a favorable investment in the nuclear sector [19]