The One Thing Democrats and Republicans Agree On

The nuclear option... A 'purple' issue... The Biden 'road map'... The Trump administration's bullishness... The AI catalyst... Updating the U.S. energy grid... The top stocks for a nuclear renaissance...

Today, we have a bipartisan election trade to report...

The Joe Biden administration has unveiled a 37-page nuclear energy "road map" that describes the government's plans to triple nuclear-power capacity by 2050.

That would put U.S. nuclear-power capacity at about 300 gigawatts ("GW"), enough to power nearly 150 million homes. The outline also plans for 35 GW of that new nuclear power to be operating in about 10 years.

And unlike many of Biden's policies, president-elect Donald Trump may not throw this one away on his first day in office...

During Trump's first stint as president, he signed several pro-nuclear laws. The U.S. Department of Energy even has a page dedicated to Trump's nuclear accomplishments.

This time around, Trump has said that new power plants and nuclear reactors are a big part of his domestic energy platform.

We recently interviewed Rick Perry, the former secretary of energy under Trump, who is also bullish on nuclear energy...

You can watch the interview, which we did after Perry's presentation at our annual Stansberry Research conference last month in Las Vegas, for free here on our YouTube page.

Our Commodity Supercycles team has described nuclear energy as a 'purple issue'...

In other words, it's supported in red and blue states and by politicians from both sides. Today's headline news is more proof of that.

In short, nuclear is going to play a critical part in U.S. energy moving forward. We've seen "safe haven" utility stocks soar in recent months. The reason is clear... artificial intelligence ("AI") needs a lot of energy. And nuclear is the most efficient way to provide that power.

As the Commodity Supercycles team wrote in a special report in May (existing subscribers and Stansberry Alliance members can find the report here)...

One pound of uranium fuel produces the same energy as more than 2 million pounds of coal. The amount of fuel required to run a nuclear unit for a year can fit on one truck. The same output from coal would take 25,000 rail cars. That would take a train more than 300 miles long.

It's not just coal. Nuclear is more efficient than the other major fossil fuels. Look at this chart the Commodity Supercycles team shared...

As you can see, you need a lot less uranium to power plants than any other energy source. Even better, nuclear energy is "clean" – producing no emissions. So nuclear can fit into any "green energy" plan.

In this other chart the Commodity Supercycles team shared, you can see that nuclear energy is also incredibly reliable, with very little downtime required for the reactors...

Major companies are already getting in on nuclear...

Multiple Big Tech companies have invested heavily in locking in nuclear-energy sources to power their AI data centers. Here are a few of the deals...

• Amazon (AMZN) paid $650 million for a nuclear-powered data center from Talen Energy (TLN).
• Microsoft (MSFT) locked in 20 years of power from Constellation Energy's (CEG) Three Mile Island nuclear power plant for its data centers.
• Alphabet (GOOGL) will pay to develop and construct several reactors to provide 500 megawatts of power.

AI is going to continue to drive investment in nuclear power...

AI alone will triple its share of U.S. electricity demand by the end of this decade. This chart from the Commodity Supercycles team shows why...

As you can see, data consumption as a percent of electricity demand is growing rapidly.

This trend is clearly on the minds of the outgoing Biden and incoming Trump administrations. Just yesterday, Trump said he would appoint former New York representative Lee Zeldin to lead the Environmental Protection Agency. On social platform X, Zeldin specifically referred to the relationship among energy and AI...

We will restore U.S. energy dominance, revitalize our auto industry to bring back American jobs, and make the U.S. the global leader of AI. We will do so while protecting access to clean air and water.

A round of congratulations...

In their May report, the Commodity Supercycles team identified their five favorite stocks to play the coming boom in nuclear energy. They include a utility provider, uranium miner, and a reactor manufacturer, among others.

In the six months since that report went live, the Commodity Supercycles nuclear portfolio has averaged a 20% gain.

That beats out the broader market's nearly 14.5% increase (as measured by the S&P 500 Index) and overshadows the VanEck Uranium and Nuclear Fund's (NLR) roughly 8% return over the same period.

The Commodity Supercycles team correctly called this trend six months ago.

But they aren't the only ones bullish on nuclear...

True Wealth Systems editor Brett Eversole and Stansberry's Investment Advisory lead editor Whitney Tilson have been – and continue to be – bullish on nuclear energy in the years ahead.

The two recently sat down together to discuss nuclear energy, among other topics. And just a few months ago, Whitney put together a special report on what he believes are the top investing opportunities in the energy sector today (existing Investment Advisory subscribers and Stansberry Alliance members can find Whitney's report here)...

Take a look at this projection from Wells Fargo, measured in terawatt-hours ("TWhs") – meaning one trillion-watt hours...

Basically, AI, on top of other trends, such as reshoring, could result in a 25% increase in U.S. electricity demand by 2030.

These are staggering projections. They're even more monumental when we consider the U.S. electricity grid is badly in need of an upgrade.

Electricity infrastructure is creaking. Two-thirds of main power lines are more than 25 years old, and 90% of large transformers – which handle power flow – are more than 40 years old.

Every presidential administration comes in with a plan to "improve infrastructure," yet little gets done.

In what feels like one of the most polarized times in American politics, both Democrat and Republican leadership have found something they can agree on... nuclear energy.

In their new free presentation, Brett and Whitney explain this "nuclear renaissance" and how you can access the top ways to play it in True Wealth Systems. You can watch it here. But only for a limited time... The broadcast goes offline tonight.

New 52-week highs (as of 11/11/24): Automatic Data Processing (ADP), American Financial (AFG), Consol Energy (CEIX), Ciena (CIEN), Cencora (COR), Pacer U.S. Cash Cows 100 Fund (COWZ), Salesforce (CRM), Cisco Systems (CSCO), Commvault Systems (CVLT), Donaldson (DCI), Enterprise Products Partners (EPD), EQT (EQT), Expedia (EXPE), Fair Isaac (FICO), Comfort Systems USA (FIX), Flutter Entertainment (FLUT), GEO Group (GEO), Generac (GNRC), W.W. Grainger (GWW), Houlihan Lokey (HLI), Honeywell International (HON), HealthEquity (HQY), iShares Convertible Bond Fund (ICVT), iShares Core S&P Small-Cap Fund (IJR), iShares U.S. Aerospace & Defense Fund (ITA), iShares Russell 2000 Value Fund (IWN), Kinder Morgan (KMI), Kenvue (KVUE), Lumentum (LITE), Cheniere Energy (LNG), Magnolia Oil & Gas (MGY), Mueller Industries (MLI), VanEck Morningstar Wide Moat Fund (MOAT), ONEOK (OKE), Palo Alto Networks (PANW), Paychex (PAYX), PayPal (PYPL), Ryder System (R), RadNet (RDNT), Construction Partners (ROAD), Sprouts Farmers Market (SFM), SPDR S&P 600 Small Cap Value Fund (SLYV), Snap-on (SNA), Spotify Technology (SPOT), SPDR Portfolio S&P 500 Value Fund (SPYV), ProShares Ultra S&P 500 (SSO), Stryker (SYK), Cambria Shareholder Yield Fund (SYLD), Toast (TOST), Texas Pacific Land (TPL), Trane Technologies (TT), Twilio (TWLO), Invesco DB U.S. Dollar Index Bullish Fund (UUP), ProShares Ultra Financials (UYG), Visa (V), Veeva Systems (VEEV), Vanguard S&P 500 Fund (VOO), Vertiv (VRT), Vistra (VST), Industrial Select Sector SPDR Fund (XLI), Zebra Technologies (ZBRA), and Zoom Video Communications (ZM).

In today's mailbag, feedback on yesterday's edition, which discussed the Federal Reserve's plans to keep cutting interest rates... and a reply to a piece of mail from yesterday... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.

"In response to your numbers about inflation and the Fed, I would think you are right to question the timing of the Fed's rate cuts. There are some economists who think the actual rate of inflation over the last four years is much higher, possibly twice as high as the 20% they quote. When I go to the grocery store or get my property and health insurance bills, I tend to agree." – Subscriber John Y.

"There are certainly numerous reasons to discuss why the American electorate overwhelmingly reelected Donald Trump as President. According to subscriber Kenneth S. the reason is people do not like 'being lied to'.

"Really? Anointing Donald Trump as a beacon of truth is surely a bridge too far don't you think?... [But] as a patriotic American, though not a fan, I will be rooting for his success. Godspeed Mr. President." – Subscriber Jim T.

All the best,

Corey McLaughlin and Nick Koziol
Baltimore, Maryland
November 12, 2024