Nuclear & Uranium

Investment Thesis

AI data centers require massive, stable baseload power that intermittent renewables cannot consistently supply. Major technology companies are signing long-term power purchase agreements directly with nuclear plants, and some are funding new reactor construction. Uranium supply remains structurally tight after a decade of underinvestment following Fukushima, while demand from both existing plant refueling and new builds is growing simultaneously.

Theme Score Breakdown

Nuclear & Uranium earns low Strong because the baseload power problem is real — electrification and AI data centers are creating demand that intermittent renewables cannot reliably meet — and existing nuclear assets like CEG and VST have genuine, contracted long-term economics. The drop from 82 reflects honest assessment of the two-speed nature of this theme: existing plant operators are solid businesses, but the growth narrative depends on SMR technology that NuScale's cancelled Idaho project demonstrates is far from commercially validated, and on uranium miners ranging from quality operators to highly speculative small caps. The investable universe earns only 7/10 because a full theme scan will include companies with significant execution risk and limited financial data quality.

Key Risks

• Regulatory and permitting delays extending new reactor timelines
• Public and political opposition to nuclear expansion in key jurisdictions
• Uranium spot price volatility creating earnings uncertainty for miners
• SMR technology unproven at commercial scale — execution risk is high