A powerful new investment thesis is gaining traction as the immense energy needs of artificial intelligence collide with a renewed push for nuclear power. While Cathie Wood's Ark Invest champions nuclear as a potential low-cost energy solution, one expert is pointing to a single U.S. company, Energy Fuels Inc. (NYSE:UUUU), as a unique way to capitalize on the trend.
Check out UUUU’s stock price here.
UUUU Can Potentially Power AI’s Energy Demand
Felix Prehn from Goat Academy, who is the co-founder of AceTrader Inc., highlights the $2.52 billion firm as a critical supplier for the AI revolution, noting it is positioned at the nexus of two megatrends: the surging demand for uranium to fuel nuclear reactors and America’s strategic push for rare earth element independence.
This comes as tech giants like Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, and Amazon.com Inc. (NASDAQ:AMZN) make multi-billion dollar commitments to nuclear energy to power their energy-hungry data centers.
The catalyst for this shift is AI’s staggering power consumption. Goldman Sachs data shows that running services like ChatGPT alone could increase data center energy use by 160%.
This demand requires 24/7 “baseload” power that intermittent renewable sources like solar and wind cannot provide, forcing Big Tech to embrace nuclear energy.
Why Can UUUU Benefit?
According to Prehn, Energy Fuels is uniquely positioned to benefit from three reasons:
- It’s Already Producing: While competitors are tied up in permitting, UUUU is the only fully licensed and producing uranium miner in the U.S. Management recently increased its 2025 production guidance by 59%.
- High-Grade Assets: The company's Pinyon Plain Mine in Arizona holds some of the highest-grade uranium deposits in North America.
- A Critical Rare Earths Edge: UUUU recently became the first American company to produce separated heavy rare earth oxides like dysprosium at 99.9% purity, breaking China’s long-standing monopoly on materials essential for electric motors, wind turbines, and defense technology.
Ark Invest Says Nuclear Could Overtake Solar As Cheapest Power Source
The investment case is supported by high-level analysis from Wood’s Ark Invest. In a recent research note, Ark argued that once utilization rates are factored in—with nuclear plants operating over 80% of the time compared to solar’s 20%, nuclear energy has the potential to become the lowest-cost source of electricity.
“If a company were to achieve a discontinuous decline in costs, nuclear power could emerge as the lowest-cost source of electricity,” the research stated.
Regulations Support Further Growth For UUUU
Prehn also observes company’s position is further bolstered by a strong balance sheet, with over $253 million in cash and zero debt, and potential government tailwinds.
Reports suggest the White House is considering executive actions to revitalize the U.S. nuclear sector and reduce reliance on foreign uranium, framing it as a matter of national security.
He identifies price support for the stock in the mid-$8 range and resistance near $10, suggesting a cautious entry for investors would be a confirmed close above recent highs in the low $10s. He stresses, however, that investors should start with small positions due to the inherent volatility of commodity stocks.
Price Action
UUUU shares ended 3.31% higher on Monday. It has advanced 113.89% year-to-date and 122.61% over the year.
Benzinga’s Edge Stock Rankings indicate that UUUU maintains a stronger price trend in the short, medium, and long terms. However, the stock scores poorly on value rankings. Additional performance details are available here.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Monday. The SPY was down 0.44% at $642.47, while the QQQ also declined 0.29% to $570.32, according to Benzinga Pro data.
On Tuesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading lower.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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