By Micah Morris, Investment Analyst:

Artificial intelligence continues to dominate the investment landscape. Valuations across the sector have pushed price-to-earnings multiples to historically elevated levels, and massive CAPEX commitments from major AI developers have kept investors both optimistic and cautious. If companies can scale effectively and deploy that capital wisely, AI-related infrastructure is poised for exponential growth.

The most visible constraint in scaling AI today is electricity. Data centers, the computational backbone of AI, consumed an estimated 4.4% of U.S. electricity in 2023, a share expected to rise to 12% by 2028. Meeting this surge in demand is expected to require up to $7 trillion in energy-related investment over the same period.

In May 2025, the Trump administration signed a package of executive orders designed to significantly boost U.S. nuclear energy deployment and leadership, which could help catalyze the power infrastructure needed for AI data centers. Announcements like these have fueled specific pockets of the market aiming to capitalize on these opportunities. Oklo ($OKLO) has been one of the largest beneficiaries, with its stock delivering strong returns over this same period. However, Oklo has yet to deliver a product and has not generated a single dollar in revenue, making it a high-risk investment at this stage. Even with aggressive federal support, no new U.S. nuclear reactors are expected to deliver power before 2032–2035, underscoring how long the deployment cycle truly is. The long wait ahead reflects the fact that the U.S. spent nearly 50 years under-investing in nuclear capacity. For decades, the industry was slowed to appease environmental voices that are now ironically the same groups championing nuclear as essential clean energy. It’s a reminder that energy policy shaped by alarmism tends to delay progress rather than accelerate it.

Nuclear has the potential to become one of the largest energy sources in the world, but it will take time. So, what about now? Natural gas has powered our country for generations and remains the preferred source for reliable baseload and backup power in data centers. A key beneficiary of this near-term demand is GE Vernova ($GEV), which provides the essential turbines, grid infrastructure, and power systems enabling data centers to operate today, not a decade from now. Unlike pre-commercial nuclear developers, GE Vernova is already delivering products, generating revenue, and seeing demand directly tied to the AI power cycle.

Our Position

We prioritize investments in companies with strong fundamentals, stable cash flows, and visible demand for their products. While innovation will always create new opportunities, we believe the most dependable returns come from businesses that have already demonstrated their ability to execute, not those still navigating uncertainty. In this environment, we aim to participate in today’s opportunities while positioning thoughtfully for tomorrow’s technologies.

By Micah Morris, MBA, Investment Analyst

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