Small Reactors Powering AI
Damien 🇨🇦🇪🇺@mewfree
−14.8%
since Oct 7
The idea
I believe AI data centers will push a big share of future power to small nuclear reactors, but that payoff is years away since most won't sell power until 2030 or later. So I built a basket weighted toward the suppliers of fuel, parts, and plant equipment, since they earn revenue now, alongside the reactor builders themselves for the bigger upside if their designs win. I keep a small cash cushion and avoid loading up on any single company, planning to hold for five to ten years through the inevitable swings.
What it owns
- Reactor components, pumps, turbines and safety systems get purchased regardless of which reactor design succeeds, and these suppliers already generate revenue today. · BWX Technologies, Inc.It already manufactures reactors and fuel for the Navy and was selected for a Canadian transportable nuclear project, generating revenue today while expanding into commercial small reactor work., GE Vernova Inc.Its small reactor design was selected by TVA, and it also sells turbines and grid equipment that data centers need, generating current revenue while nuclear capacity expands., Curtiss-Wright CorporationIt manufactures pumps, controls and safety systems required in reactors regardless of design selection., Mirion Technologies, Inc.It sells radiation detection and safety equipment that every reactor and fuel production facility must purchase., Flowserve CorporationIt manufactures valves and pumps required by nuclear plants on every new construction project regardless of reactor type.37%
- Small reactors require uranium, and many need enriched fuel that only a limited number of producers can manufacture. · Centrus Energy Corp.It produces enriched fuel called HALEU that many small reactor designs require, with few other US manufacturers capable of producing it., Cameco CorporationIt mines uranium and co-owns Westinghouse, positioning it to earn revenue whether large or small reactors dominate the market., Uranium Energy Corp.It mines uranium in the US and benefits if increased reactor deployment drives demand for domestically sourced fuel., ASP Isotopes Inc.It is developing a new method to enrich fuel for small reactors, potentially addressing fuel supply constraints., Lightbridge CorporationIt designs advanced reactor fuel intended to extend reactor operating life and improve safety, with potential adoption across multiple reactor designs.28%
- These companies design small reactors themselves and face the largest potential gains if the technology scales or the largest losses if adoption stalls. · Oklo Inc.It focuses on small reactors for data center applications and achieved criticality in its Texas reactor, though commercial power sales remain years away., NuScale Power CorporationIt holds the only small reactor design already certified by US regulators, providing a first-mover advantage if utilities and data center operators begin placing orders., NANO Nuclear Energy Inc.It develops microreactors designed to power individual sites and recently hired fuel expertise to expand internal fuel production capacity., Terrestrial Energy Inc.It advances molten salt reactor technology as an alternative design that could appeal to industrial and data center buyers.21%
- Engineering and building plants for small reactors requires specialized expertise tied directly to early deployment projects. · Fluor CorporationIt engineers and builds large industrial plants and has established relationships with small reactor developers, earning revenue when construction projects commence.4%
- Cash10%