AI Bubble? Fuggedaboutit! Nuclear’s the Real Deal.

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Alright, settle in, folks. You’re hearing a lot of chatter about an AI bubble, right? A bubble! Like we haven’t seen enough of those. It’s either going to be the next big thing or a digital Hindenburg. Honestly, who knows? I’ve seen more reliable predictions from my Aunt Mildred reading tea leaves. So, what’s an investor to do? Well, you could chase the shiny object, or you could do what any sensible person would do: invest in something that won’t melt down if the algorithm hits a snag.

And that, my friends, brings us to energy. Not solar, not wind… nuclear. Yes, nuclear. I know, I know, it sounds scary. Visions of glowing green goo and three-eyed fish, right? But trust me, it’s the unsung hero of the AI boom. You see, all these fancy AI servers need power. Lots of power. And where does that power come from? Not wishes and rainbows, that’s for sure.

The International Energy Agency, those number-crunching wizards, predict AI data centers will double their electricity demand by the end of the decade. Double! That’s a lot of kilowatts, folks. It’s enough to make Edison spin in his grave… or maybe power his ghost, who knows? And that’s where our friend, the atom, comes in.

The U.S. Department of Energy, bless their ambitious hearts, wants to triple America’s nuclear energy capacity by 2050. A lofty goal, sure, but they’re looking at Small Modular Reactors – SMRs – to get it done. Think of them as nuclear power plants, but… smaller. And more modular. It’s like Lego for grown-ups, but with significantly more radiation. And leading the charge in this brave new world? BWX Technologies (BWXT +0.30%). They’re the guys building the bricks, so to speak.

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The Power of the Atom in the Palm of Your Hand (Almost)

BWX Technologies, based in Virginia, has been playing with nuclear power since the 1950s. They built over 400 nuclear power systems for the U.S. Navy. Four hundred! That’s a lot of submarines. They even designed parts for the USS Nautilus, the world’s first nuclear-powered submarine. It was all very James Bond back then, except with more paperwork and fewer martinis.

And the government is still their biggest customer. In the most recent quarter, government operations brought in $617 million. That’s a tidy sum, even for a company dealing with atoms. But here’s the kicker: commercial operations are booming, up 122% year over year. That’s right, 122%! It’s like they’re printing money… or, well, generating power.

Oh, and they’re not just building reactors, they’re getting efficient. Operating free cash flow climbed 338%, and they achieved an operating margin of 17.7%. That’s what I call a good day at the office. I wish my accountant could work those kinds of miracles.

But it doesn’t stop there. They also produce advanced nuclear fuel, specifically TRISO fuel. This stuff is incredibly robust, capable of withstanding high temperatures and resisting meltdown. It’s like the Chuck Norris of nuclear fuel. It contains itself. It always contains itself.

And this fuel is meant for their BWXT Advanced Nuclear Reactor – BANR. This thing is factory-built, transportable, and can generate 50 megawatts of power. It’s compact, efficient, and designed with data centers in mind. Think of it as a portable power plant for the digital age. It’s like having a miniature sun in your backyard, but, you know, safer.

The idea is simple: cluster data centers, plop a BANR in the middle, and power them without straining the grid. No more brownouts, no more skyrocketing energy costs. It’s a win-win! But it’s not just for data centers. They can power remote towns, oil rigs, even college campuses. You can profit from AI’s power demands without touching an AI stock. It’s like getting the benefits of a party without having to deal with the guests.

So, there you have it. BWX Technologies is a fast-growing company with a cozy relationship with the U.S. government and the potential to profit from AI without the bubble risk. And if that bubble does burst? BWX will be well-insulated. After all, atoms don’t care about market fluctuations. They just… exist. And that, my friends, is a comforting thought.

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2026-02-03 02:42