This issue has been discussed for many years, but with the rise of AI it's become even more prominent, because consumption has increased and accelerated dramatically. Energy. Specifically electricity. People keep talking about there being too little of it in the future.
Decades pass and not much changes (not even the Green Deal changed things much). However, this could really change now thanks to AI-driven consumption. An enormous amount of energy will be needed, and aside from renewables modular reactors will play a leading role.
Companies like $OKLO and $SMR and $LEU (listed from largest to smallest market cap) are among the best in the US, and indeed in the world. They haven't received the publicity they deserve so far. So, what do you think of them, and which would you invest in and why? And if you'd choose a different one, please let me know in the discussion which.
Vote to see the results! 0 answers already!
I don't understand this sector very well, so I probably wouldn't choose anything else. So far I'm most interested in $OKLO.
Everyone writes the same thing that you all keep repeating here—that data centers have extreme electricity consumption and, as their number grows, there’s enormous demand for power. But that’s mostly generic talk (I’m not saying it’s untrue) that people repeat without backing it up with facts and numbers. The truth is that electricity consumption for data centers is only about 5% of total energy production. Of course I don’t dispute that their consumption will rise, but personally I wouldn’t invest in the companies mentioned above, because only the last one has fundamentals I’d call good (maybe even very good), and its price would have to be halved before I’d even put it on my watchlist. By the time the early-stage companies (some have been “starting” for quite a while and still have no results, just big plans) begin to profit in a sector that’s a long-distance race, their share prices might rise on market sentiment, but some will undoubtedly go bankrupt — if I wanted that kind of gamble I’d rather place a bet at a bookmaker. So if anything, I’d rather look for someone who will actually build those plants; they’ll profit much sooner, or I’d back more established firms. I own Fortum: I’ve already sold most of my position, but I kept a small part that I top-uped in April, for which I haven’t yet met the one-year holding test.
I just read an article about how electronics are getting more expensive because they're being bought up for data centers, and RAM that cost about $100 half a year ago now costs $1,000.
And thanks to AI, nuclear power plants are being revived and built again, because nothing else can handle the demand.
AI increases electricity consumption and the pressure on the energy sector is real, but it certainly won't happen overnight. Modular reactors make sense over the long term, but you must account for regulation and long lead times for deployment. An interesting sector, but better suited to a small, patient position rather than a quick bet.
At this price I'm lightly buying into SMR
I chose $OKLO because of its ties to Altman. It was my backup target, and still is, in case $QS doesn't work out.
NuScale/SMR currently has a higher probable "potential for success" (the probability that the company becomes a stable business)
and that is due to a regulatory lead, financing, and partnerships.
Oklo may deliver higher returns, but only if it survives a long,
capital‑intensive period without revenue and manages licensing; it is more of a speculative position, suitable only as a small part of a portfolio.
These companies will be hugely important going forward, so it's great to pay attention to them. I'll pick a stock eventually and buy in.
I've had my position in Oklo for almost two years. I used to hold SMR, but I sold it.