Marko Grecs @emge2116: "🔷 𝙄𝙎 𝙉𝙊𝙒 𝙏𝙃𝙀 𝙏𝙄𝙈𝙀..."

Slovenia

🔷 𝙄𝙎 𝙉𝙊𝙒 𝙏𝙃𝙀 𝙏𝙄𝙈𝙀 𝙁𝙊𝙍 𝙄𝙉𝙑𝙀𝙎𝙏𝙈𝙀𝙉𝙏𝙎 𝙄𝙉 𝙉𝙐𝘾𝙇𝙀𝘼𝙍? 🔷 Nuclear energy stocks have attracted growing attention from investors in recent years. Climate concerns, the limits of renewables, and the high cost of hydrogen have prompted countries to reconsider nuclear power, particularly as energy security became urgent after the war in Ukraine and the rapid rise of power-hungry AI technologies has pushed electricity demand even higher. This renewed interest is backed by decades of evidence showing nuclear to be a safe, carbon-free energy source. ➤ 𝙍𝙞𝙨𝙞𝙣𝙜 𝙚𝙡𝙚𝙘𝙩𝙧𝙞𝙘𝙞𝙩𝙮 𝙙𝙚𝙢𝙖𝙣𝙙 𝙖𝙣𝙙 𝘽𝙞𝙜 𝙏𝙚𝙘𝙝’𝙨 𝙥𝙪𝙨𝙝 𝙞𝙣𝙩𝙤 𝙚𝙣𝙚𝙧𝙜𝙮 𝙨𝙚𝙘𝙩𝙤𝙧 AI is driving a sharp rise in electricity demand. A single ChatGPT query uses roughly ten times more energy than a traditional Google search, and AI workloads have already increased power needs at some data centers by tenfold, with the potential to rise even further in the future, in some cases approaching the consumption of entire cities. This marks one of the first meaningful increases in power demand in decades, with global energy use expected to rise by as much as 20% over the next decade. Faced with this surge, Big Tech companies can no longer simply plug in on existing power grids, which were not built for such rapid growth. To keep their systems running, companies like Amazon, Microsoft, Google, and Meta are beginning to engage directly in the energy sector through long-term power purchase agreements, investments in nuclear projects, and partnerships with utilities. ➤ 𝙉𝙪𝙘𝙡𝙚𝙖𝙧 𝙞𝙨 𝙩𝙝𝙚 𝙤𝙣𝙡𝙮 𝙨𝙘𝙖𝙡𝙖𝙗𝙡𝙚 𝙨𝙤𝙡𝙪𝙩𝙞𝙤𝙣 As countries push to cut emissions and expand clean energy, they are running into the limits of wind and solar, which depend on weather and are still far from meeting growing power demand. With reliable alternatives limited, nuclear stands out as the only option capable of delivering large amounts of carbon-free electricity without relying on fossil fuels. ➤ 𝘾𝙝𝙖𝙡𝙡𝙚𝙣𝙜𝙚𝙨 & 𝙘𝙤𝙨𝙩𝙨 Nuclear power still faces public resistance, shaped by past accidents and long-standing fears around safety, waste, and cost. Those concerns are understandable, but they often overlook improvements in reactor design, regulation, and operating standards. Modern plants have decades of safety data behind them. The cost problem is starting to be addressed by Big Tech companies getting involved in the nuclear industry to secure reliable power for their data centers. ➤ 𝙇𝙤𝙣𝙜-𝙩𝙚𝙧𝙢 𝙤𝙥𝙥𝙤𝙧𝙩𝙪𝙣𝙞𝙩𝙞𝙚𝙨 The downstream side of the nuclear industry is already well funded, while the upstream segment, focused on uranium mining and production, remains underinvested and largely overlooked. As policy uncertainty for utilities fades, longer-term uranium contracts are expected to increase from 2026 onward, with capital inflows and consolidation likely to favor upstream producers. As this gap closes, valuations in the upstream part of the industry are likely to follow. Uranium demand continues to outpace supply. Cameco, for example, has already sold most of its production through 2028-2029, and the company estimates that roughly two-thirds of utility demand remains uncovered over the next two decades. This imbalance suggests that higher prices will be driven by utilities competing for long-term contracts rather than short-term spot trading, with forecasts pointing to uranium prices rising from the current $80 per pound to $100, $150, or even $200 per pound. ➤ 𝘾𝙤𝙪𝙣𝙩𝙧𝙞𝙚𝙨’ 𝙉𝙪𝙘𝙡𝙚𝙖𝙧 𝙋𝙤𝙡𝙞𝙘𝙞𝙚𝙨 In 2024 and 2025, U.S. utility contracting volumes remained soft due to tariff threats, geopolitical maneuvering, trade uncertainty, sanctions, and price volatility. At the same time, the Trump administration has supported the expansion of nuclear power, with plans to quadruple domestic capacity to meet rising energy demand by 2050. In Trump’s own words, the U.S. needs to stay ahead of AI and produce tremendous amounts of electricity. On the other side, Kazakhstan, the world’s largest uranium producer, is tightening access to supply and prioritizing value over volume, aiming to keep price high and better monetize its dominant position in the market. The 2023 coup in Niger disrupted uranium supply, particularly for Europe. Ongoing political instability has made contracting difficult, keeping geopolitical risk high and supply constrained. ➤ 𝙇𝙤𝙤𝙠𝙞𝙣𝙜 𝙖𝙝𝙚𝙖𝙙 At the same time, the uranium market remains structurally tight, with supply still lagging behind reactor demand globally. Major producers such as Kazatomprom, the world’s largest and lowest-cost uranium producer, have made it clear that higher prices are needed to bring new supply online. With uranium prices and related stocks currently under some pressure, this imbalance between demand and supply may present an attractive long-term entry point, pointing toward a supportive price environment over time. $URA (Global X Uranium ETF)

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URA

Global X Uranium ETF

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