In a recent interview, AI permabull and Wedbush analyst Dan Ives responded that the energy concerns around the revolutionary tech can be mitigated effectively by nuclear sources. The market seems to agree with him, as shares of the VanEck Uranium and Nuclear ETF (NLR) are up 49% on a year-to-date (YTD) basis. The ETF, with an AUM of about $3.4 billion, is one of the biggest in the sector, covering companies involved in uranium mining, nuclear reactors/power production, and equipment & services in the nuclear industry.
Moreover, projected to reach a size of about $51.83 billion by 2035 from about $37 billion today, the uptick story for stocks in the sector is expected to continue. Several reasons are cited for the same: whether it is the huge buildup of data centers for AI, the large pipeline of new capacity in Asia, or government support across the globe to cut harmful emissions from fossil fuels, the case for nuclear going “nuclear” in terms of growth is many.
