Portfolio Spotlight: The Power of the Future – why electricity could become one of the most important investment themes of the next decade
In recent weeks I’ve added several companies focused on power generation and nuclear energy to my watchlist. While media headlines are still dominated by artificial intelligence, cloud services and semiconductors, I’m increasingly looking one rung lower in the whole chain.
Every AI model, data center, factory, electric vehicle, robot or cloud service ultimately depends on one thing: electricity.
The world continues to digitize, automate and electrify. At the same time, AI data centers are consuming ever larger amounts of energy. Demand is further driven by electric vehicles, heat pumps and industrial electrification. Unlike many other commodities, electricity has no real substitute in the modern economy.
From this comes a simple but, in my view, very strong investment thesis: if long-term electricity demand grows faster than supply, companies involved in power generation, nuclear fuel and energy infrastructure could be among the main winners in the years ahead.
That’s why I’ve added a few interesting names to my radar.
Nano Nuclear Energy ($NNE) I currently have set with a planned entry around 26 USD. It’s one of the most speculative companies on my list. The company focuses on developing small modular reactors (SMRs), which could significantly change the energy landscape if they succeed. If this technology gains traction, the growth potential could be enormous. On the other hand, most of the current valuation is based on expectations. Commercial deployment is still distant, regulatory processes will be demanding, and the risk of failure remains high.
Centrus Energy ($LEU) I’m watching with a planned entry around 168 USD. The company occupies a very specific position in the nuclear fuel supply chain. It specializes in uranium enrichment, an area gaining importance especially as Western countries try to reduce dependence on Russian supplies. If nuclear power truly experiences a renaissance, enrichment capacity could become a very valuable asset. The risks remain high sensitivity to political decisions and the cyclical nature of the sector.
To me the simplest investment story in the group is Constellation Energy ($CEG). The company operates one of the largest fleets of nuclear power plants in the United States and already generates stable cash flow today. While many companies benefit indirectly from the AI boom, Constellation provides something data centers cannot function without—stable, continuous electricity. The advantage is an established and profitable business. The downside is that investors are increasingly aware of this story and expectations are significantly higher than a few years ago. I plan to enter at 260 USD.
I also have Vistra ($VST) on my watchlist with a planned entry around 144 USD. The company combines traditional and renewable energy sources and benefits from rising electricity demand in energy-intensive regions. Compared to pure-play nuclear names it offers greater diversification and lower technological risk. On the other hand, it’s more exposed to electricity price developments and broader market conditions.
My investment approach for the coming days:
Some of these stocks are already trading below my originally set entry levels. Still, I’m in no rush. I currently prefer to wait for a calming of market volatility before I start building new positions. One indicator I follow is the VIX index, which helps gauge market stress and investor sentiment.
If volatility remains elevated, even high-quality companies can trade at even more attractive prices.
Patience is also an investment position.
My long-term thesis remains simple: the world will need more electricity, not less. The question isn’t whether demand will grow, but which companies will be able to extract the most value from it.
What are your favorite stocks related to power generation or nuclear energy? Do you prefer power producers, nuclear fuel suppliers, or more speculative opportunities around SMR technologies?
You can find an English version of this post on my eToro profile. If you want to follow me there or potentially copy my USD portfolio, I’d appreciate it!