AI data centers were not foreseen in any scenario in which the power grid was designed today. A ChatGPT query consumes 10 times more energy than a Google search. Agentic workflows increase this even further. Hyperscalers require hundreds of gigawatts of capacity, but the sun sets, the wind stops, and the grid wasn't built to handle this load. There are several reasons why companies like Microsoft ($MSFT), Google ($GOOGL), Amazon ($AMZN), Oracle ($ORCL), and Meta are successively turning to nuclear energy. These companies are sitting at the nuclear table because they see no other way out – it would be more accurate to say it's under pressure from Trump. If the energy gap isn't closed, AI growth will physically stop, and those who know this best have already signed the agreements.
Add to this the geopolitics of the war with Iran and Russia's control of approximately 40% of global uranium enrichment capacity. A significant portion of Western reactors are still tied to supply chains dating back to the Soviet era. Before the war in Ukraine, this was a commonplace issue; now it's a strategic threat to both the US and the EU. The US, Canada, Australia, and the UK are coordinating to increase their domestic uranium capacity. Budgets have been allocated, laws passed, incentives etc. I won't go into detail about these companies, you already know them. To understand where the uranium issue is heading, you need to look not just at miners but also at SMRs (Sustainable Reactivation).
And the technology has finally caught up. The SMR concept remained a topic of discussion for a long time, but not anymore. NRC (Neural Network Reactors) licenses are being issued, construction is beginning, and private capital is flowing in. The 10-year construction periods and cost overruns of traditional large reactors are eliminated in this architecture. Reactors that are factory-built, transported to site, scaled modularly, and designed to be physically incapable of meltdown are now a reality. When this transition is complete, uranium demand will reach a new dimension because SMRs are required to use HALEU fuel, and the number of Western facilities capable of producing this fuel is in the single digits.
This is precisely where this issue stands out from the others. In most investment issues, you enter either too early or too late; the window in between is narrow. In this theme, each layer has its own input, its own catalyst, and its own timing. First, uranium miners will move because the demand for raw materials starts today ($CCJ, $LEU, $UUUU, $UEC). Then reactor component manufacturers and engineering firms step in because the construction cycle takes years ($BWXT, $GEV, $PWR, $FLR). Finally, SMR operators move in because their revenue starts when the reactors come online ($OKLO, $SMR, $NNE, $CCJ, $LEU). These three layers form a structure that feeds and overlaps each other, and each offers a different risk-return profile for me.
The nuclear theme, especially with SMRs, isn't just a sector rotation. It's a wind blowing in the same direction simultaneously: the reality of energy infrastructure, the imperative of geopolitics, and the demand pressure created by AI. I don't see another theme where these three driving forces overlap like this.
The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.
