Why I'm still bullish on nuclear power and my favorite ways to play this long-term trend
I've long been bullish on nuclear power...
On May 15, I shared an interview where I discussed some exciting developments in the sector. And I continue to follow the headlines with great interest.
So today, I'll share some recent nuclear-related news. Then I'll reiterate my bull case for nuclear stocks, which I first presented at last year's Value Investing Seminar. And I'll share my favorite ways to play this trend.
1) This article in yesterday's Wall Street Journal details how nuclear activism is rising in both pop culture and politics.
Fans of the energy source range from influencers like Isabelle Boemeke to tech moguls like Bill Gates and Sam Altman, as well as politicians from both parties. Excerpt:
They are riding a wave of improving public sentiment. About 60% of Americans support the construction of more nuclear power plants, according to the Pew Research Center. That's a significant shift from 2020, when 43% said they supported more power generation from atomic energy.
This other WSJ article outlines President Donald Trump's goal to quadruple nuclear-power generation in the next 25 years... and why it won't be an easy feat. Excerpt:
For most of the past three decades, the industry has been managing ever-older assets instead of building new reactors. Developers are counting on a supply-chain revival and will have to prove they can deliver on time and on budget to drive interest in the sector...
Trump's executive orders are intended to speed a slow industry by overhauling the country’s nuclear regulator, fast-tracking licenses for new projects, boosting domestic fuel supplies and using federal lands for reactors.
This final WSJ article shares two recently published books that advocate for nuclear energy: Going Nuclear by Tim Gregory and Atomic Dreams by Rebecca Tuhus-Dubrow. Excerpt:
Then and now, every pro-nuke case features the singular, astonishing fact of nuclear fission's energy density.
"A few crumbs" of uranium, Mr. Gregory notes, can "power a lightbulb for five years," while "a comparable amount of coal" only does the job "for about 100 seconds."
Similarly, Ms. Tuhus-Dubrow cites Stewart Brand, the creator of the "Whole Earth Catalog," who observed that one nuclear plant occupies "a third of a square mile, compared with more than 200 square miles for a wind farm and more than 50 square miles for a solar array."
2) I believe we're in the early innings of a multiyear – even multidecade – trend. So even though stocks in the sector have risen, there's still plenty of long-term upside ahead.
At the Value Investing Seminar in Italy last summer, I outlined my bull case for nuclear power. I started by noting the explosion in demand for electricity (which I also discussed in depth in my July 9, 2024 e-mail):
I argued that renewables like solar and wind aren't reliable enough to meet the surging demand. And fossil fuels like coal and oil have many environmental concerns.
In comparison, nuclear power is reliable, safe, and clean:
As a result of growing demand, the construction of new reactors is surging. This has been mostly in Asia, with the U.S. scrambling to keep up:
This expansion is driving huge demand for uranium, creating a supply-demand imbalance:
Not surprisingly, the price of uranium has soared. It more than tripled from 2019 to 2024:
3) My team and I recommended three stocks to play this trend in our Commodity Supercycles newsletter.
They're already up 101%, 246%, and 52%. But my team and I still think they have plenty of room to run.
In a new presentation for Commodity Supercycles subscribers, I detail part of the reason I'm so bullish on nuclear power...
Google's parent company Alphabet (GOOGL) recently signed a huge contract with a tiny private firm set to generate virtually limitless energy.
This technology could trigger an energy market shock, supercharge the AI revolution, and save homeowners tens of thousands of dollars.
One former Alphabet insider says this technology "could be even more important than the industrial revolution."
It's no wonder the tech giant is investing in the company with the best chances of turning it into a reality.
Now, thanks to a little-known "backdoor" into this red-hot startup, it could be your turn.
Click here to get its name and ticker symbol for free before this backdoor closes.
Best regards,
Whitney
P.S. I welcome your feedback – send me an e-mail by clicking here.