I Called the AI Trade. Now I'm Calling This

[01:00:00:02 - 01:00:45:04] AI hyperscalers quadrupled their   spending in just two years, and now they're  burning close to $400 billion a year building   data centers. That single line of spending drove  92% of US GDP growth last year. And without it,   the entire economy grew just 0.1%. And right now,  natural gas generates 43% of all electricity in   the United States. And the on-again-off-again  relationship with the Strait of Hormuz has   already sent gas prices vertical, which we  all see every day, and wholesale electricity   prices are going to follow right behind it.  Layer on the fact that summer heat is going   to be causing electricity usage to spike, and  wholesale electricity prices are going to be   higher than we've ever seen them. And when this  happens, the biggest beneficiary is nuclear.   [01:00:45:04 - 01:00:52:08] Their fuel costs didn't move,   but their revenue and their margins are about  to because all ships rise with the tide,   [01:00:52:08 - 01:03:32:11] And that's why I'm covering the top   nuclear stocks that are built for long-term  growth, especially after we've had a few   pullbacks. But before we jump in, if you're  getting any value from my videos, then please   consider pressing the like button. And if you'd  like to see more of my analysis and my deep dives,   my stock trades in real time, then you'll  want to check out my Patreon. Last November,   I walked through the four-tier nuclear stack.  You've got mining, you've got fuel and enrichment,   innovation reactors, and operating utilities. And  today, we're going to be walking through that same   framework, but we're going to be focusing on  six big updates since then. And there's also   a big lawsuit that you're going to want to know  about. What's changed is that hyperscalers stopped   waiting and they started signing. Microsoft signed  a deal. Amazon signed a deal. Meta signed a deal.   When you add up all the power purchase agreements,  or PPAs, which are basically long-term electricity   supply contracts, plus the equity stakes and  co-development deals, there's over $200 billion   in the form of nuclear contracts that are on the  table right now. Here's the mechanism that makes   all of this work. Wholesale electricity prices  on the grid get set by the marginal power plant,   which is almost always natural gas, because  gas is the swing producer in most regions.   When gas prices spike, wholesale prices spike  with them. And nuclear's fuel costs are locked   in for 20 years or more on fixed contracts. So  when gas begins to run up, nuclear revenue and   margins go up automatically. But their costs  don't. And that's the whole machine. Now,   if picking individual stocks is not your style,  then it's no big deal. I'll be finishing off the   video with ETFs that play in the same setup.  Let's go ahead and start with the foundation.   Mining and feedstock. So uranium ore gets pulled  from the ground and converted into yellow cake.   And that feedstock flows into everything above it.  And that leads to the first name on this layer,   which is Cameco, the world's second largest  uranium miner that accounts for roughly 14   to 20% of the global uranium production. Cameco  also owns 49% of Westinghouse Electric Company.   When the US government announced an $80 billion  nuclear partnership with Westinghouse in October   of last year to deploy 10 AP1000 reactors and  multiple AP300 small modular reactors, Cameco   started capturing economics from both sides of the  supply chain. The uranium comes out of the ground   on Cameco's side, and the reactor that burns it  is partly Cameco's through the Westinghouse stake.   In 2025, Cameco's share of Westinghouse  profits grew 26% in a single year. Now,   I do want to point out that there are four other  miners in this layer that are worth knowing.   [01:03:32:11 - 01:04:51:00] So we've got utilities, data centers,   and nuclear plants that are feeding them. They  all run on hardened infrastructure because just   one breach is going to take down millions, but  nobody's protecting your personal infrastructure,   your accounts, your passwords, or your trading  logins. And that brings me to something personal   and today's sponsor. When I first started this  channel, I got fished by someone pretending to be   a sponsor and just one click on a fake contract  was all it took for them to take over my phone,   my computer, and this entire YouTube channel.  Here's the thing. 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[01:04:51:00 - 01:13:48:15]   Energy Fuels operates the only conventional  uranium mill in the United States that's located   in Utah, with the bonus of being permitted to  process rare earth elements that are alongside   uranium. Then we have Uranium Energy Corp, which  is the largest US-based uranium producer, with   shovel-ready in-situ recovery projects in Texas  and Wyoming. And then we have Paladin Energy,   which runs the Langer Heinrich mine in Namibia,  which just recently resumed production after years   of being offline. And next is Denison, which is a  Canadian development stage player with one of the   higher-grade uranium deposits. Now, an item  to point out is that none of these have the   integrated Westinghouse story that Cameco has,  but if you want a pure play exposure to rising   uranium prices, these are the names that you're  going to want to know. Now we move up to Tier 2,   the fuel cycle, where the supply squeeze hits the  hardest. The primary name on this layer is Centris   Energy, the only United States-based uranium  enrichment provider. So after Russia got banned   from supplying enriched uranium to the US, the  domestic market opened wide up, and they're the   only player that's positioned to fill it. Their  backlog has essentially gone from essentially   nothing to over $2 billion in federal and utility  contracts inside of just two years. And there were   other supply cuts that were announced earlier  this year, and the demand is running way ahead   of the supply for the first time in over a decade.  Spot uranium is sitting at around $90 per pound,   and that happens to be well above the price that  incentivizes new production. Next on this layer is   Babcock and Wilcox Technologies, and they're the  only large-format commercial nuclear equipment   manufacturer within North America. And their  commercial backlog surged 85% year over year   by the end of 2025. And Kairo's Power signed a  commercial manufacturing partnership with BWXT   in September of 2025, and Google signed Kairo's  Fort 500 megawatts of power by 2035. That means   that BWXT is a fuel supplier in the Kairo's  chain, capturing revenue from every reactor   that Kairo sells. BWXT also manufactures Treso  nuclear fuel, which is the fuel architecture used   in every advanced and small modular reactor, or  SMR, that's being developed right now. When the   advanced reactor wave begins to hit, BWXT captures  revenue on two different fronts. Now we're going   to go ahead and move up to Tier 3, the innovation  reactors. These happen to be the moonshots.   First on the list is Oklo, the Sam Altman-backed  Advanced Microreactor company. The DOE reactor   pilot program is targeting criticality  milestones on three test reactors by July 4,   2026. And if Oklo's Aurora facility achieves  self-sustained fission before summer, that's the   first real proof that factory-built microreactors  work at scale. I had brought up Oklo last year,   and they've already moved up several hundred  percent since then. Next up is NuScale, which is   working through an active securities fraud class  action suit. The lead plaintiff deadline passed   on April 20th of 2026. Despite all that, I think  that NuScale is still worth putting on your watch   list. Because if their integrated 77 megawatt  design hits NRC certification around the same time   that the lawsuit settles, then the SMR, or small  modular reactor, completely changes the playbook   and that could lift well above this lawsuit. And  the newest name on this layer is X-Energy, which   recently just IPO'd. X-Energy is the Amazon-backed  high-temperature gas reactor company. And Amazon   has committed to deploying 5 gigawatts of X-Energy  reactors through AWS by 2039. And of course,   ARK Invest is also a lead backer. In this space,  the execution catalyst to watch is whether their   XE100 reactor hits design certification in the  2027 to 2028 window. Now we move on to the very   top of the pyramid with Tier 4, where a completely  different structure lives. These are the operating   utilities who signed those big PPAs that I  mentioned at the beginning. And this is where   the electricity structure really begins to capture  extra margin for them. And the first name on this   layer is Constellation Energy, and they're  the largest nuclear operator in the United   States with 22 reactors. And after the CalPine  acquisition closed in January, they're sitting   on roughly 33 gigawatts of total generation  capacity. CEG started trading as a standalone   company at the Exelon spinoff in February  2022, and it's now over 5 times that. They   also have the Microsoft Three Mile Island restart,  which is locked in for a 20 year contract, where   the Three Mile Island grid connection happened to  get pushed from 2027 to 2031. But Microsoft has no   intention of walking away from a 20 year contract  because of a four year delay. And CEG's other 20   reactors are just going to keep generating PPA  revenue the whole time. Next we have Vistra,   where the transformation is probably the most  visible. Where Vistra's free cash flow went from   burning $1.2 billion in 2021 to generating nearly  $4 billion by 2023. That's a wild flip within 24   months. And it all happened because gas and power  prices surged, while their nuclear and coal fleet   stayed online with fixed cost economics. Vistra  signed a recent deal with Meta for up to 2.6   gigawatts, which phases in from 2026 through  2034. And when power prices begin to spike,   that nuclear fleet becomes the margin machine that  carries the entire company. Now third on this list   is Talon Energy, which comes out of Chapter 11 in  mid 2023, trading at around $38 a share. And it's   now over 10 times that amount. That's incredible  for the stock to go up tenfold in less than two   years for a company that nobody even wanted. The  market completely rode off Talon as a dying coal   and nuclear merchant. And two years later, it's  the cleanest pure nuclear operator in the anchor   list after their 2023 divestitures. And their  anchor deal happens to be with Amazon for 1.9   gigawatts, which Amazon actually renegotiated up  after a recent ruling in December 2025 that made   the original co-location structure untenable. So  there's some litigation going on with Talon that   you need to watch out for, but if it goes in  their favor and it's supposed to be ruled in   the third or fourth quarter of 2026, then it could  see a lot of growth. Now there happens to be one   name on the equipment side that ties into all of  this, and that's GE Vernova. And they're a spinoff   of GE's power business, and they're the ones that  are building the BWRX 300 small modular reactors   in a global alliance with Hitachi. Now when  utilities begin to deploy SMRs in the next decade,   they need an equipment manufacturer with the  engineering depth and supply chain to actually   build them. And GEV is one of the only Western  players that can do that. Now let's get to the   part of the video where I showcase how I would be  investing $100 across these nuclear players. I'd   begin by putting $50 into tier four, which is the  operators. In my mind, tier four is the anchor of   the entire basket, and it gets the largest slice  because the conviction to me is the highest.   These are the operators who already signed those  long-term agreements. And with electricity rates   going up everywhere, that means their revenue and  their margin is also going to go up. That whole   merit order mechanism is what's letting them  print money when gas begins to spike up. Next,   I'd be putting $25 into tier two, which is  the fuel cycle. For me, that's the leverage   play when demand begins to outrun supply for the  first time in a decade. I mean, the way I see it,   if you can control the fuel, then you control  the speed of the entire rollout. And next,   I would be putting $15 into tier one, which is  the miners. Now to me, the mining is the complete   foundation because the supply is where everything  is going to flow from. And lastly, I would put   $10 into the tier three, which I see as moonshots.  This is where the potential millionaires could be   made if any one of them hits hard. And if neither  of them hits, then the tier one, two, and four,   they really carry the whole investment. And there  you have it. That's my full allocation based on   all of the new information that's available.  And based on where your risk tolerance is,   clearly you can shift across each of the different  tiers based on what your needs are. Because   everybody's math is going to be different based  on their risk tolerance and their time horizon.   Now I do want to point out there's just one last  thing. This happens to be a five to 10 year setup.   It is definitely not a three-month trade. The grid  is not being built overnight. This is definitely   the long game. But the way I see it, the supply  constraints are going to hit first. Demand hits   second and the companies that own the leverage in  between all of those are the ones that are going   to be printing the money. Oh, and of course,  for those of you that prefer simpler exposure,   here's several ETFs on the screen and they  cover the same ground with broadening out the   risk. And of course, they rebalance for you.  And as always, thanks so much for watching.