The Supply and Demand Imbalance You Should Keep an Eye On
The U.S. is going to be desperate for more energy in the years to come...
It's hard to talk about markets (let alone anything) and not bring up artificial intelligence ("AI"). AI is the buzzword on just about every news site. And it has only just begun.
As you may know, the data centers powering AI demand enormous amounts of energy. According to the Electric Power Research Institute, power demand for AI is projected to increase tenfold by 2030.
One answer to the problem is uranium and nuclear energy.
Nuclear power is created by splitting atoms, a process that releases energy in the core of these atoms. (The core of an atom is called its nucleus, leading to the "nuclear" term.) This process, which is called nuclear fission, creates heat and is directed toward something to cool it down – like water. The water heats into steam, which turns a turbine that's connected to a generator... and presto, electricity.
Given past fears about nuclear power's safety and the storage of radioactive byproducts, this energy source seemed to have a dwindling future.
But that's changing... Nuclear power has been enjoying a renaissance in recent years, one that's only going to accelerate.
Uranium is the basic building block of nuclear energy. Processed and enriched uranium is used as fuel for nuclear reactors. And unlike fossil fuels – which deliver more than three-quarters of the world's energy – nuclear energy is completely carbon-free.
Nuclear power accounts for around 10% of the world's electricity. In the U.S., it's nearly twice that figure. And nuclear energy supplies more than a third of the electricity in Belgium, France, and Sweden.
Critically, nuclear energy provides what's called "baseload" power. Environmentalists love wind and solar energy as guilt-free renewable options. But wind turbines need wind, and solar panels require sunshine. Nuclear power plants aren't dependent on anything but uranium, so they generate electricity more reliably.
A stable power grid needs energy sources that supplement each other. Even in a world that embraces renewables like solar and wind, nuclear power will play a key role.
Clearly, there's demand for uranium and nuclear energy... According to the World Nuclear Association, over the next five years, demand for uranium in nuclear reactors is projected to rise roughly 30%.
There's one issue, though. Uranium is facing a severe shortage.
Since 2018, the uranium market has been structurally undersupplied, with production meeting only 80% of global demand. This deficit isn't temporary, it's systemic.
According to Global X Funds, production of uranium is projected to come up 60 to 70 million pounds short of demand in 2025.
That's why the government is now scrambling to ramp up domestic supply. Here are some of its recent actions...
- President Donald Trump signed a flurry of executive orders boosting domestic uranium production, and unlocked federal land for new development.
- Congress passed the ADVANCE Act, a bipartisan bill set to accelerate nuclear reactor construction at a breakneck pace we haven't seen since the 1970s.
- And tech giants Google, Amazon, and Microsoft all pledged to triple global nuclear power capacity by 2050.
Put simply, the race is on...
And what this leaves us with is a compelling supply and demand imbalance for uranium. As you should have learned in your high-school economics class, when demand is greater than supply – prices rise.
Based on past booms, you should consider having exposure to the price of uranium in your portfolio to capture incredible gains...
For example, uranium prices skyrocketed from under $10 per pound in 2000 to an all-time high of $136 per pound in 2007. Take a look...
You could've made more than 1,000% gains in just a few years – all triggered by a supply crunch similar to today's scenario.
In short, a major supply-demand imbalance can send uranium soaring... faster and higher than most people could ever expect.
We believe uranium is one of the few hopes for a low-carbon future. More nuclear power plants are being built, while uranium production is not as high as it should be.
Now, investing in uranium funds and uranium producers is not for rent money. Uranium can be highly volatile. But we believe the bull run in uranium still has a long way to go.
It's rare to see an obvious setup like this... with demand much higher than supply.
My friend and colleague Joel Litman – from our corporate affiliate Altimetry – also sees compelling setups in the market, but with certain stocks.
In short, a domino effect will soon be set in motion that could trigger lightning-fast price moves... in dozens of America's favorite companies.
Joel has been tracking the situation for months. And similar to the setup with nuclear and uranium, you'll have to act fast if you want to profit.
He believes one specific anomaly could help you see stocks that will deliver gains of 200%... 500%... even 800% by this time next year.
Joel's presentation goes live tonight – and you can sign up to learn more here.
What We're Reading...
- Something different: In an effort to craft the perfect phishing scam, major AI chatbots were happy to help.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
September 17, 2025