To The Moon

Nuclear power has become a hot spot since the week.

This hot concept is from AI - because of the electricity.

Four of the top 10 performers in the $.SPX(.SPX)$ this year. Utility consists of Four of them, with $Vistra Energy Corp.(VST)$ leading the way with a year-to-date return of more than 252%. $NVIDIA Corp(NVDA)$

If NVIDIA is the AI seller of shovels, then Power & Energy is the seller of the seller.

The main reason for this two-day explosion is that giants including $Amazon.com(AMZN)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ $Microsoft(MSFT)$ are all getting into nuclear power investments in order to give the next few years ofenergy some ambush.

Why are tech giants getting into nuclear energy?

Because of AI's massive power needs.

Amazon's investments, made primarily through its cloud computing arm - AWS - reflect the company's forward-thinking approach to future energy needs, particularly in driving the development of AI and other energy-intensive technologies.Companies in the partnership include:

1. $Dominion Resources(D)$ Collaborating on the development of the SMR project, the

2. X-energy will provide technical support for the reactor, the

3. in Pennsylvania with Talen Energy to build a data center next to its nuclear facility.

Google, for its part, has signed a deal with Kairos Power to build six to seven small nuclear reactors that will provide a total of 500 megawatts of power.The first reactor is expected to be operational by 2030.

Microsoft, for its part, has reached an agreement with $Constellation Energy Corp(CEG)$ to restart one of the plant's reactors that was not affected by the meltdown, supplying all of its power for the next 20 years.

Also, OpenAI's Sam invested in $Oklo Inc.(OKLO)$

we believe $Apple(AAPL)$ $Meta Platforms, Inc.(META)$ is on the way.

Why small modular reactors?

Small modular reactors are gaining attention because of their high efficiency and low carbon emissions.Specifically, they have the following characteristics.

1. Generating capacity can be adjusted according to demand, making it more suitable for distributed energy systems.

2. Modern designs emphasize safety and reduce the risk of accidents.

3. Compared to fossil fuels, small nuclear reactors produce virtually no greenhouse gases during operation.

4. Relative to wind and tidal generation points are simpler.

Shares of nuclear technology companies have all exploded up recently, and the market has all been relatively receptive to the potential of small nuclear reactor technology.

Is secondary market performance normal?

1. $Oklo Inc.(OKLO)$ The partnership has had a more pronounced impact on the stock price due to its smaller size, but its performance has not been good, and as a Utility yet to turn a profit is pretty bad, with some meme attributes

2. $ Vistra Energy Corp.(VST)$ $ Constellation Energy Corp(CEG)$ $ Dominion Resources(D)$As a stable and profitable Utility company, the recent share price performance is a relatively fair representation of expectations, as it is driven by the nuclear order book, which is largely indicative of "growth".

3. Is the industry as a whole overvalued?It has not reached that level at all yet, and Utility's own defensive attributes are the opposite of the risky attributes of growth stocks, so if the broader market will fluctuate next, there will be a certain amount of safety cushion instead.