Could This AI Energy Stock Really 25X? (I Own It)

Stock picker Karim Rahemtulla claims billionaires are going all in on this energy cube that will supposedly solve AI's power crisis. He goes on to call this the most important energy breakthrough in 100 years. He wants nearly $1,000 to reveal the stock, but after watching his presentation, I figured out the stock is Amentum, ticker AMTM. In this video, I'm going to tell you what exactly Amentum does, the bull case, the hidden risks Karim doesn't tell you about, and whether or not I think it's a buy. But before I do anything, I want to show you how I figured out the stock. Karim's new hour-long presentation teases something called an energy cube. That sounds like a mysterious new invention, but he eventually explains it's called a small modular reactor or SMR or a microreactor. These are smaller nuclear reactors designed to be manufactured largely inside factories and then deployed much faster than a traditional nuclear power plant. The basic argument is that artificial intelligence is creating an enormous need for electricity. Data centers have to operate around the clock, but the electrical grid is already struggling to keep up. Karim believes small modular reactors could provide dependable power directly to data centers, military bases, and industrial facilities. The company developing the specific reactor in this presentation is Rolls-Royce. However, Rolls-Royce is not actually the mystery stock. Karim says, "The energy cube is a two-step story. So first, someone had to build the tech, then someone else has to roll it out." In other words, Rolls-Royce designed the reactor, but another company must help turn that design into real operating power plant. Karim then introduces the mystery company by saying, "I call them Rolls-Royce's secret partner." That was the first clue. So I searched for companies officially working with Rolls-Royce on the delivery of its small modular reactors, and the answer showed up almost immediately. In January 2026, Rolls-Royce announced Rolls-Royce SMR has appointed Amentum as its program delivery partner. But one announcement alone is not enough, so let's continue matching the clues. Karim says the mystery company is not manufacturing the reactor itself. He explains, [snorts] "This company does not pour concrete or assemble parts. It manages the delivery of large nuclear programs." He then describes its responsibilities as construction oversight, system integration, and supply chain coordination. Now compare that with Amentum's official description of its role. Amentum says the agreement makes it responsible for integration, oversight, and governance, construction management, and execution of SMR deployment. That is almost an exact match for the responsibilities Kareem describes in the presentation. Kareem also says the company will be involved in taking the reactor from a design on paper to something that can actually operate. He says each energy cube has to be constructed, installed, and brought online. According to Amentum, it will use its nuclear experience to oversee the program and integrated planning for the first Rolls-Royce SMRs in the United Kingdom and Czech Republic. So again, the company's actual job matches the pitch. Amentum is not betting on which reactor design eventually wins. It has been selected to help Rolls-Royce execute the projects, coordinate the different pieces, and make sure the reactors are delivered successfully. But the strongest clue in the entire presentation involves a specific contract. Kareem says, "Earlier this year, it secured a nine-figure contract in Wales." He later adds that the company already has 14 years of work in place. This is where the answer becomes extremely obvious. On April 1st, 2026, an Amentum-led joint venture announced that it had secured a contract for the first UK small modular reactors. The announcement states, "The contract has a maximum value of $406 million and a duration of up to 14 years. The project is located at Wylfa in North Wales and will support the deployment of Rolls-Royce's SMR technology." That matches every important part of Kareem's clue. It is a nine-figure contract. It is in Wales. It involves Rolls-Royce small modular reactors. And it can last for as long as 14 years. Kareem then gives us a major financial clue. He says, "Their current backlog, get this, is $47 billion." Amentum reported that as of April 3rd, 2026, it had a total backlog of $47.8 billion. Once again, Kareem appears to be rounding the number, but it is clearly the same company. I'm going to tell you whether this stock is a buy in the next section, but first want to remind you to click the link in the description after you're done watching this video to get my free report on the top 10 stocks to buy and hold. There you will see stocks I think all investors should have in their portfolio. So we are now 100% certain this is the stock. Let's figure out if it's buy. The easiest way to understand this company is to think of it as the behind-the-scenes engineering and technology partner for some of the world's most complicated government projects. Amentum does not primarily manufacture weapons, nuclear reactors, or spacecraft. Instead, governments and major companies hire Amentum to design systems, manage enormous projects, maintain critical equipment, and make sure everything works together. Its customers include the US military, intelligence agencies, NASA, the Department of Energy, and allied governments around the world. Amentum divides its business into two main segments. The first is digital solutions. This side provides cybersecurity, intelligence analytics, advanced information technology, and space system development. The second and larger segment is global engineering solutions. This includes nuclear projects, environmental cleanup, military logistics, equipment maintenance, engineering and supply chain management. That is where the Rolls-Royce small modular reactor opportunity fits into the company. One thing to consider is this is primarily a government contractor. Roughly 81% of its revenue came directly from the US federal government, making government budgets and contract awards extremely important to the business. The benefit is that many of these contracts can last for years and provide relatively predictable revenue. It is also important to understand that Amentum is not a pure small modular reactor stock. The Rolls-Royce partnership could become a meaningful long-term opportunity, but it currently represents only a small piece of a much larger company. Now, let's look at the bull case because it's strong. First is the $47.8 billion head start. Investors like that Amentum is not starting from zero. It already has $47.8 billion in backlog, representing more than 3 years of annual revenue waiting to be completed. Its book-to-bill ratio is also 1.2, meaning Amentum is winning new contracts faster than it is finishing existing work. And because many of these projects involve national security, nuclear facilities, and critical government operations, replacing Amentum is not always easy. Second is Amentum is a real business, not a nuclear lottery ticket. Amentum is also very different from speculative nuclear stocks that may not generate meaningful revenue for years. The company produced roughly $3.5 billion in its latest quarter and generated $220 million dollars free cash flow. That gives Amentum an established business capable of paying down debt and investing in growth while the nuclear opportunity develops. And lastly, Amentum is the picks and shovels SMR play. Amentum does not have to invent a successful reactor. It gets paid to help deliver the projects. Rolls-Royce selected Amentum as its SMR program delivery partner and an Amentum led group has already secured a contract worth up to 406 million dollars for the first British project. If small modular reactors become a major source of power for AI data centers, Amentum could benefit from the rollout without taking the same technological risk as the reactor developers. The bull case is pretty serious, too, though. Firstly, the backlog has an asterisk. The first risk is that Amentum's $47.8 billion dollar backlog is not the same as guaranteed revenue. Only $6.9 billion dollars is currently funded. The rest includes future government funding and contract options that may never be exercised. Because Amentum depends heavily on government work, budget cuts, shutdowns, or shifting priorities can delay projects or eliminate portions of that backlog altogether. Next is the $4 billion dollar debt hangover. Amentum also carries roughly $4 billion in debt compared with just $428 million in cash. Its net leverage is currently 3.2 times adjusted EBITDA. The company is producing enough cash to reduce that burden, but interest payments still consume money that could otherwise fund acquisitions investments or shareholder returns. And lastly, the SMR payoff could take years. Investors should not assume the Rolls-Royce partnership will transform Amentum overnight. The headline contract is worth up to $406 million. It's shared through a joint venture and could be spread across 14 years. That is meaningful, but relatively small beside Amentum's roughly $14 billion annual business. And because commercial SMRs still face regulatory, financing, and construction hurdles, this nuclear opportunity could develop much more slowly than the promotional presentation suggests. So, what do I think about Amentum? This is actually a stock I've owned since November 2025. Another stock picker, Jason Simkins, was also pitching the stock, but in a completely different way. He was pitching it as a company that could benefit from anti-gravity propulsion systems. Simkins is someone who has picked good military stocks in the past, so I bought it. However, the stock has performed really poorly and is one of the worst performing stocks in my portfolio. But, here's the thing, I still like the stock and I think right now is probably a really good time to buy. This looks like a good beaten-down turnaround story to me. The valuation is extremely low with a forward P/E ratio of only eight. On top of that, the company is growing faster than almost every other company in its sector. However, I wouldn't buy this stock based on some of the wacky technologies these stock pickers have connected it to. These guys need to sell exciting stories to convince people to buy their newsletters. You shouldn't buy Amentum because of its exposure to anti-gravity vehicles or SMRs. SMRs are still a long way from becoming a major commercial reality. Companies like Oklo claim their reactors will be commercially available within the next few years, but there always seem to be setbacks. Other SMR companies admit their reactors may not be commercially available until the 2030s. However, Amentum's margins are improving, earnings are growing, bookings are strong, and debt costs are declining. The stock has struggled because investors briefly valued it like an emerging nuclear, AI, and space growth company. When in reality, it is a slow-growing, highly leveraged government contractor. I think this could still be a good stock over the long term, but the company now needs to prove that its $47 billion backlog and attractive contract announcements can produce consistent organic revenue growth, continued debt reduction, higher free cash flow, and meaningful revenue from nuclear, space, and digital infrastructure. If that happens, I personally believe buying the stock at these levels will pay off. So, despite being burned by Amentum so far, I still think the stock is a buy and I'm not ready to give up on it yet. Before you go, don't forget to grab my free report. The 10 stocks I believe you can buy today and hold forever. It's packed with solid long-term picks you won't hear hyped up anywhere else. Just click the link in the description, enter your email, and I'll send it straight to you.