I Called the AI Trade. Now I'm Calling This

BWB - Business With Brian•May 3, 2026

Summary

Brian highlights that AI hyperscalers are quadrupling their spending, burning nearly $400 billion annually on data centers, which accounted for 92% of US GDP growth last year. This surge in demand drives electricity usage, predominantly generated by natural gas (43% of US electricity). As natural gas prices become volatile due to geopolitical factors (Strait of Hormuz) and seasonal heat, wholesale electricity prices are expected to spike. Brian asserts that nuclear energy producers are the biggest beneficiaries because their fuel costs are locked in for 20 years or more, allowing their revenue and margins to increase automatically with rising electricity prices while their costs remain stable. He introduces a four-tier nuclear stack (mining, fuel and enrichment, innovation reactors, operating utilities) and provides updates on key players within each.

He notes significant developments since November, including over $200 billion in nuclear contracts (Power Purchase Agreements, equity stakes, co-development deals) signed by major hyperscalers like Microsoft, Amazon, and Meta. Brian outlines his investment allocation strategy for a hypothetical $100, recommending $50 into Tier 4 (operators), $25 into Tier 2 (fuel cycle), $15 into Tier 1 (miners), and $10 into Tier 3 (innovation reactors), emphasizing that this is a 5-to-10-year long-term setup, not a short-term trade. He also mentions ETFs as a simpler, diversified option for exposure to the sector.

**Cameco:** The world's second-largest uranium miner, producing 14-20% of global uranium. Brian highlights its strategic advantage through its 49% ownership of Westinghouse Electric Company, allowing it to capture economics from both uranium mining and reactor deployment, especially after an $80 billion US government partnership with Westinghouse for AP1000 and AP300 reactors. Their share of Westinghouse profits grew 26% in a single year by 2025.

**Energy Fuels:** Operates the sole conventional uranium mill in the US (Utah), with the added capability to process rare earth elements. It is presented as one of the names for pure-play exposure to rising uranium prices.

**Uranium Energy Corp:** The largest US-based uranium producer, possessing shovel-ready in-situ recovery projects in Texas and Wyoming, providing direct exposure to the increasing demand for uranium.

**Paladin Energy:** Runs the Langer Heinrich mine in Namibia, which has recently restarted production after a long hiatus. This re-entry into production offers significant upside as uranium demand outstrips supply.

**Denison:** A Canadian development-stage player known for one of the higher-grade uranium deposits, presenting pure-play exposure to the uranium mining sector.

**Centrus Energy:** The only US-based uranium enrichment provider, uniquely positioned to fill the domestic market gap after Russia's ban. Its backlog surged to over $2 billion in federal and utility contracts within two years, benefiting from the supply squeeze where demand outstrips supply for the first time in a decade. Spot uranium is sitting at around $90 per pound, which is well above the price that incentivizes new production.

**Babcock & Wilcox Technologies (BWXT):** The only large-format commercial nuclear equipment manufacturer in North America. Its commercial backlog surged 85% year-over-year by the end of 2025. It also manufactures TRISO nuclear fuel, crucial for advanced and small modular reactors (SMRs), positioning it to capture revenue from every reactor sold by partners like Kairos Power (which secured a Google deal for 500 MW by 2035).

**Oklo:** A Sam Altman-backed advanced microreactor company targeting criticality milestones on three test reactors by July 4th, 2026. If its Aurora facility achieves self-sustained fission before summer, it will prove factory-built microreactors at scale, with the stock having moved up several hundred percent since Brian's previous mention.

**NuScale:** Despite an active securities fraud class action suit with a lead plaintiff deadline in April 2026, Brian recommends adding it to a watch list. He believes that if its integrated 77 MW design achieves NRC certification around the lawsuit's settlement, it could significantly change the SMR landscape and lift well above this lawsuit.

**X-energy:** A newly IPO'd, Amazon-backed high-temperature gas reactor company. Amazon has committed to deploying 5 GW of X-energy reactors through AWS by 2039. The key execution catalyst to watch is whether their XE-100 reactor hits design certification in the 2027 to 2028 window.

**Constellation Energy (CEG):** The largest nuclear operator in the US with 22 reactors and roughly 33 GW of total generation capacity after the Calpine acquisition. It has a locked-in 20-year contract with Microsoft for the Three Mile Island restart, even with a grid connection delay from 2027 to 2031, with Microsoft having no intention of walking away. CEG's other 20 reactors continue to generate PPA revenue, and its stock is now over five times its value since its spin-off in February 2022.

**Vistra:** Demonstrated a significant turnaround, moving from burning $1.2 billion in free cash flow in 2021 to generating nearly $4 billion by 2023. This transformation is attributed to surging gas and power prices while its nuclear and coal fleet maintained fixed-cost operations. Vistra recently signed a deal with Meta for up to 2.6 gigawatts, which phases in from 2026 through 2034.

**Talen Energy:** Emerged from Chapter 11 in mid-2023 trading at around $38 a share and has since increased tenfold in less than 2 years. After 2023 divestitures, it is now considered a clean, pure nuclear operator. Its anchor deal is with Amazon for 1.9 gigawatts, which Amazon renegotiated up after a recent ruling in December 2025. Brian advises watching ongoing litigation, as a favorable ruling in the third or fourth quarter of 2026 could lead to substantial growth.

**GE Vernova (GE V):** A spin-off of GE's power business, responsible for building BWRX-300 small modular reactors in a global alliance with Hitachi. Brian positions it as one of the only Western equipment manufacturers capable of building SMRs with the necessary engineering depth and supply chain as utilities begin to deploy them in the next decade.