The AI Investing Pulse

👻👻October 31st, 2024 🎃🎃

The Energy Companies Set to Thrive from AI’s Rising Demand

This week’s analysis explores AI’s impact on the energy sector. With AI projected to drive energy demand sharply upwards, data centres in AI-intensive regions like the United States could consume around 10-12% of total electricity by 2030, according to recent industry estimates. 

As Big Tech and AI-heavy industries seek sustainable, reliable energy sources, nuclear power is undergoing a revival. Analysts see nuclear’s scalability, low emissions, and 24/7 reliability as an ideal fit for AI’s expanding needs. Here are some of the companies leading the charge according to The Motley Fool, Benzinga and Schaeffer’s Research.

Constellation Energy (CEG) stands out as a key player in this resurgence. Both Benzinga and Schaeffer’s Research spotlight Constellation for its extensive nuclear infrastructure, positioning it as a potential primary supplier for AI’s escalating power needs. Constellation has become a preferred choice among analysts for investors looking to capitalise on AI’s energy demands.

NuScale Power (SMR) is gaining attention for its small modular reactors (SMRs), designed to provide scalable, flexible power solutions suited to the needs of tech-heavy sectors. The Motley Fool highlights NuScale as a strong investment in light of AI’s growing power demands, emphasising that its SMR technology could transform nuclear energy into a more adaptable, distributed option for industries with fluctuating energy needs.

Oklo (OKLO) is another innovative player in the nuclear field, known for its advanced reactor designs aimed at providing sustainable power on a smaller scale. Benzinga and Schaeffer’s mention Oklo as a key company to watch, particularly for investors interested in companies pushing the boundaries of nuclear innovation to serve energy-intensive technologies like AI.

Vista Energy (VST) has been flagged by Benzinga and Schaeffer’s Research for its potential role in supplying AI’s power demands, with investments geared towards scalable nuclear solutions. The Motley Fool also lists Vista as an appealing choice within the nuclear energy space, as its infrastructure aligns well with both AI and broader tech industry requirements for consistent, high-output energy.

Lightbridge Corporation (LTBR) and Centrus Energy (LEU) are smaller players gaining attention for their contributions to nuclear fuel technology and advanced reactor designs. Their unique capabilities could play a significant role in making nuclear power a go-to option for supporting AI’s growth. Schaeffer’s Research highlights these companies for their potential to innovate within the nuclear fuel supply chain, addressing AI’s projected energy needs.

For investors, the intersection of AI and energy presents exciting opportunities as demand grows, yet complex challenges remain. As AI reshapes the global energy landscape, investing in companies that are not only expanding their energy capacity but also enhancing infrastructure resilience will be crucial to supporting AI’s rapid growth and ensuring reliable, scalable power sources. It’s not just about generating more power, but also about safeguarding these systems to maintain stability as AI technology advances.

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AI STOCKS & ETFs NEWS 

AMD delivers mixed Q3 results, light guidance - IBD - AMD late Tuesday matched Wall Street's earnings but the chip giant's revenue guidance for the current period was a bit light. AMD stock fell in extended trading.

Google's AI-fuelled gains in cloud bode well for Amazon, Microsoft - Reuters - Google's advancements in AI are boosting its cloud business, which could challenge Amazon and Microsoft's dominance.

Why Hedge Funds are betting big on AI models - Analytics Insights - Hedge funds are increasingly investing in AI models to enhance their investment strategies.

AI STARTUPS

Future of AI startups: trends and predictions - KillerStartups - Emerging trends in AI startups highlight advancements in machine learning and automation. Predictions suggest a growing focus on ethical AI and enhanced user experiences as key drivers for future innovations.

OpenAI Chair’ AI startup Sierra gets $4.5B valuation - Inc - The software startup co-founded by former Salesforce co-CEO Bret Taylor, has raised $175 million in a new funding round.

7 explosive AI coding startups of 2024: The year’s biggest VC bets - CEO Today - How tech giants and startups are shaping the future of software development.

AI TRENDS

Cisco CEO calls 2025 'year of enterprise application' for AI - Yahoo Finance 🎦- He emphasizes the transformative potential of technology in the enterprise sector, projecting significant advancements by 2025.

Code B releases 2024 AI funding analysis uncovering investment patterns and key industry trends - TheWeek - Code B has published an in-depth report on the AI funding landscape in 2024. The report reveals critical insights into investment patterns across various stages and sectors.

The 10 most powerful data trends that will transform business In 2025 - Forbes - Welcome to 2025, where data isn't just transforming business, it's rewriting the rules of how we live and work.

Agentic AI is the top strategic technology trend for 2025- ZDNET - The emergence of agentic AI signals a significant shift in technology, as it enables machines to operate autonomously and make decisions.

OTHER

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New Study by AI at Wharton reveals doubling of AI use across key business functions - StreetInsider -  Nearly 3 in 4 leaders (72%) report using Gen AI at least once a week, up from 37% in 2023.

How AI Is killing the Harvard MBA - Forbes - As automation takes over traditional roles, the relevance of outdated business curricula is being called into question.