"The nuclear energy companies, which include the likes of reactor innovator Oklo ( NASDAQ:OKLO) and Canadian uranium producer Cameco ( NYSE:CCJ), have been a pretty popular way to bet on the great AI race without betting on the technological innovators themselves. Undoubtedly, tech valuations have become quite high of late, and with growing concern over a potential plunge in AI stock valuations, perhaps the energy plays powering the boom could be the way to score decent"
"Either way, given the appreciation in the nuclear energy stocks in recent months, I do think that some magnitude of the boom is already priced in. And while we might not yet be in an AI bubble, investors should always be ready for more volatility should that AI trade start to really reverse course in a hurry. Even if the AI innovators and model makers don't get a great return on their spending,"
Nuclear energy companies like Oklo and Cameco provide an indirect investment route to benefit from rising AI-related energy demand while avoiding direct exposure to high-valued AI technology firms. Recent appreciation in nuclear stocks suggests much of the AI-driven upside may already be priced in, but energy demand from AI data centers is likely to remain substantial even if AI spending yields disappointing short-term returns. Nuclear plays can offer exposure with potentially lower downside during a tech selloff because nuclear demand is broader than AI alone. Oklo has experienced a larger pullback from peak while still showing significant longer-term gains from earlier levels.
Read at 24/7 Wall St.
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