Why I'm Investing In Nuclear
It's impossible for this not to be lucrative.
This isn’t investment advice. I am not an investor. I have no idea what I’m doing. Don’t listen to me and definitely don’t buy stock because of something I said. If you lose money, it’s not my fault but you probably deserve it.
If I were smart, I would have invested in nuclear reactor companies 5 years ago. I didn’t because I am risk averse and I purposefully don’t do market research because I feel as though it pulls my attention away from building companies.
However, this is too interesting not to take note.
Before we get started, I recommend reading some news articles.
All caught up? Great.
LFG. 🔥`
Why Is Nuclear Getting In The Headlines?
In short, it’s because of AI.
One search query on ChatGPT costs about 10X the energy as one Google search query. The compute power needed for LLM’s to function is quite staggering.
There is massive demand for compute power and for energy to cool and maintain the huge data centers needed to train the AI. Say what you will about America’s tech behemoths, they are certainly the ones pushing the United States forward in our financial and technological dominance over the world.
This week, we saw announcements in nuclear power investments from Google, Microsoft, and Amazon. In addition, we have seen personal investments from Bill Gates and Sam Altman Fried.
Why Nuclear Is A Great Idea
The answer for our climate crisis and our energy demands has always been nuclear. There is no other way. It’s simply not possible to meet our worldwide energy demands on fossil fuels without warming the planet.
Even still, we will eventually run out of oil. I think I read somewhere that Saudi Arabia has about 40 years of oil production left. (Did I make this up?)
So we either build nuclear plants, or we start burning coal.
Even if fate wasn’t forcing our hand, nuclear power is the better option to fossil fuels. Why?
it’s much cleaner
nuclear waste can be recycled
nuclear waste can also be buried deep into the earth’s surface
the efficiency of nuclear power is remarkable
Thermal Efficiency: ~33-37% (typical for most thermal power plants)
Capacity Factor: ~90% (higher than most other energy sources)
Fuel Efficiency: Extremely high due to the energy density of uranium
The way I see it, we have two options. We can either build nuclear power plants or we can live in a climate hellscape and watch our coastal cities drown and watch about 40% of the world’s population mass migrate causing inevitable conflicts, water shortages, homelessness, and a population collapse.
Anyway …
Nuclear Has Gotten Terrible Branding
I can’t think of anything that has worse branding than nuclear power.
If I told you that there was a fundamental force of the universe that could provide us with all the power the planet needs, that doesn’t produce carbon emissions, and is sustainable for generations, you would probably take notice.
That’s exactly what nuclear is.
Those damn soviets and their graphite tips ruined it or the rest of us.
Currently, there are two major hurdles holding back nuclear power.
Fear
Nimbyism
Both of of those setbacks are small hurdles when you think of nuclear power’s greatest advantage.
Money.
People Are Going To Make So Much Fu*king Money That Nuclear Will Become Inevitable
The AI boom is just the beginning. Realistically, we need 20,000 nuclear power plants to power the entire world.
Think about that. There are 1.2 million gas stations in the world. The amount of infrastructure and logistics required to get all those gas stations built, maintained, fueled, and operational is nothing in comparison to what it would require from us to build nuclear power plants.
Obviously, building a nuclear power plant isn’t the same as building a gas station, but if if building 20,000 nuclear power plants is all that stands in between us and an infinite energy supply, then the smart money is on nuclear.
Over the next ten years, I predict we see massive investment in the field. We will need investments in …
uranium extraction
contractors
power grids
government contracts
new tech, such as SMR’s
Not to mention the government subsidies we will see in countries that import all of their oil, such as China.
The United States alone, which is a top energy consumer, would need 530 power plants to power the entire country.
On average, around 4 to 5 nuclear reactors are being completed globally each year. Over 50 reactors are currently under construction worldwide, with most new builds concentrated in countries like China, India, and Russia, which are expanding their nuclear energy programs.
We are entering a world of AI infused, nuclear powered, utopia. My grandkids will think of a coal plant the same way I think of what it must have been like to pull a horse and wagon across town.
Nuclear Is Not A Pipe Dream. It’s Completely Realistic And We’ve Psyched Ourselves Out Of The Solution Because Chernobyl Scared Us
I know a lot about physics and a decent amount about nuclear physics, but only because I read and watch YouTube videos. I don’t know how to put any of this knowledge into practical use. So I have nothing to offer the industry outside of writing a few newsletters and making investments.
The truth is that nuclear power is clean, safe, sustainable, and creates much less problems for the environment than oil and gas. You can move the energy easily through a grid, and as we improve our science, reactors will only become more safe and more easily maintained through the mechanics.
If you learn about Chernobyl, and about what actually happened, you see that Chernobyl was easily avoidable and even simple regulation can ensure we don’t see a disaster like that again. So far, we haven’t shot any nuclear missiles at each other so I believe we can help each other build sustainable power.
In fact, I would argue that nuclear power makes it less likely that we shoot nuclear missiles at each other. As we bring each other up and we increase the quality of life for humanity, there becomes less reason to fight.
With that said, here are the companies I am probably going to invest in.
Cameco Corporation (CCJ) – One of the largest uranium producers globally, with long-term supply contracts in place, particularly with major players like China.
BWX Technologies (BWXT) – A leader in nuclear technology, serving sectors like energy, defense, and healthcare.
Uranium Energy Corporation (UEC) – Focused on expanding uranium production, especially in the U.S., benefiting from growing demand for nuclear energy.
I also like the concept of “Small Modular Reactors” (SMR’s) which are basically mini nuclear reactors. The tech is has a long ways to go in terms of generating exposure for itself, but it will get there.
Okay, that’s enough of my nuclear rant. I’ll keep writing about this topic.
Love you guys. Talk to you tomorrow.
P.S. - Belgium is going great. Will share more tomorrow.
P.S.S. - Thinking of starting a newsletter, I think a weekly newsletter about the business of nuclear power is a winner. I would read it.
Sam Altman Fried!!! 😂