Investment Q&A

Many nuclear power stocks benefited from the AI trade and expectations for increased energy demand for AI data centers, but the expected need for increased power may not be as big as expected, and investors are worried about the AI CAPEX cycle rolling over. NXE is a $3.8B company that is pre-revenue, and mostly funds its operations through share dilution. Like most stocks, NXE has fallen a lot over the past several months, and given the recent weak momentum, we would prefer to see some stabilization in its price before adding to the name, but we would be comfortable holding it here. Its future prospects look good, but it is not expected to be profitable for a few years, and so much of its price will be determined by expectations for future nuclear energy demand.