💰 New Alpha | AI is the new electricity: CNR/LEU/UUUU
💰 Technical indicators suggest a risk of market correction.
💹 $Core Natural Resources, Inc.(CNR)$/$Centrus(LEU)$/$Energy Fuels(UUUU)$ : poised to benefit from the AI revolution and a growing demand for clean energy.
📣 Stay tuned, supercharge purchasing power through CashBoost!
| The Energy Gap in the AI Era
The latest executive orders related to nuclear power from the Trump administration have prompted a reevaluation of the entire nuclear power supply chain, reinforcing the investment logic of nuclear energy as a significant source of power consumption for AI. Stocks such as $Talen(TLN)$, $Cameco(CCJ)$, and $Power Solutions International, Inc.(PSIX)$ have all reached new highs this year; last Friday, $New Fortress Energy LLC(NFE)$ surged by 18%, leading the market.
In preparation for the U.S.-China AI arms race, President Trump is set to sign a series of executive orders aimed at strengthening electricity supply. This includes streamlining the review process for connecting power generation projects to the grid and releasing federal land for power developers. As a result, stocks like $Core Natural Resources, Inc.(CNR)$, $Centrus(LEU)$, and $Energy Fuels(UUUU)$ have seen notable increases recently.
The training of large AI models and data processing consumes a significant amount of electricity, presenting substantial market potential. Energy consultancy firm Grid Strategies predicts that from 2024 to 2029, the pace of electricity demand expansion in the U.S. will be five times that of the 2022 estimates. Consulting firm Deloitte has stated that by 2035, the power demand of AI data centers could surge more than 30 times.
| Market recap
This week, the U.S. stock market has drawn attention with the release of critical economic data, including the CPI on Tuesday, PPI on Wednesday, and retail data on Thursday, all of which will influence Federal Reserve decisions and market trends.
The trade war is escalating and nearing a verification stage. Trump announced tariffs on Mexico and the European Union, intensifying trade tensions. The earnings season kicks off this week, with reports from $Morgan Stanley(MS)$, $Netflix(NFLX)$, and $Taiwan Semiconductor Manufacturing(TSM)$ under close scrutiny. Nvidia's CEO is visiting China to hold a press conference, which may reveal details about chips exclusive to the Chinese market.
Major indices have recently hit new highs, but technical indicators show a risk of market correction. Investors should be cautious and manage risks, considering reducing positions at elevated levels.
Megacaps - $4T and beyond
After $NVIDIA(NVDA)$'s market capitalization surpassed $4 trillion, it continued to rise, accumulating a 3.5% increase over the past week, standing out significantly among the Magnificent 7. Such a high stock price aligns with the company's level of attention and is well-founded. Reflecting on last week’s major market events, $Tesla Motors(TSLA)$ launched its latest model, $Meta Platforms, Inc.(META)$ invested heavily to attract AI talent, $Apple(AAPL)$ announced partnerships with external AI firms, and $Microsoft(MSFT)$ faced tensions with OpenAI—all significant events revolving around one central issue: the race for computing resources.
The only notable exceptions might be $Amazon.com(AMZN)$'s extended Prime Day this year and Bezos's high-profile wedding.
This Crypto Week
The House has designated the week of July 14 as "Crypto Week," during which the CLARITY Act, the GENIUS Act, and the Anti-CBDC Act will be reviewed, marking a pivotal moment for the industry. Today, Bitcoin has surpassed the $120,000 mark for the first time, and investor optimism has surged as its price breaks out of consolidation.
Top movers
Benefiting from the rise in BTC and ETH prices, $SharpLink Gaming(SBET)$ gained 17.2% last Friday, and $Strategy(MSTR)$ increased by 3.0%. In pre-market trading today, major cryptocurrency stocks have risen in price.
Drone stocks have soared as the Defense Secretary accelerates drone production and deployment: $Astronics(ATRO)$ up 16.2%, $Kratos Defense & Security Solutions(KTOS)$ up 11.8%, and $AeroVironment(AVAV)$ up 11%.
The U.S. government will invest in rare earth production to reduce dependency on imports, leading to increases in $Vizsla Silver Corp(VZLA)$ by 8.7%, IPX by 6.4%, and $MP Materials Corp.(MP)$ , which has surged 41.7% over the past week.
| AI - The new electricity
AI continues to be the main investment theme in the U.S. stock market, with upstream energy suppliers benefiting from a favorable policy environment and improved performance, potentially delivering excess returns.
CNR
$Core Natural Resources, Inc.(CNR)$ is a global provider of high-quality, low-cost coal, ranging from metallurgical coal to high-calorific value thermal coal. CNR owns and operates 11 major coal mining operations across the country, including one of the largest and most efficient longwall mining complexes in North America. Longwall mining is a modern extraction method where a long face of coal is mined in one large slice by a specialized machine known as a shearer.
CNR was formed through the merger of CONSOL Energy and competitor Arch Resources. In Q1 2025, CNR achieved over $1 billion in revenue, representing an 80% year-over-year increase. Although it reported a loss of $69.3 million, this was primarily due to $49.2 million in expenses related to the recent merger.
With favorable policies and the release of the company’s performance, the outlook for the future is promising. The company reiterated its full-year coking sales volume forecast and pledged to update this during its second-quarter earnings release, scheduled for August.
LEU
$Centrus(LEU)$ is the only American company capable of supplying enriched uranium to the U.S. government, thanks to its license from the U.S. Nuclear Regulatory Commission, which grants it this unique privilege. Low Enriched Uranium is the fundamental material for fabricating nuclear fuel and is produced by enriching naturally occurring uranium to enhance its energy production capabilities.
With the global nuclear power revival, the demand for high-assay low-enriched uranium (HALEU, 5–20% U-235) is increasing, driven by small modular reactors (SMRs) and advanced reactors. To address its long-standing dependence on Russian Techsnabexport for enriched uranium, the U.S. government is supporting the company in launching domestic HALEU demonstration production lines, aiming for energy independence and creating new business opportunities.
As demand for nuclear energy heats up, LEU's stock price has risen more than 200% year-to-date.
UUUU
$Energy Fuels(UUUU)$ is a significant American minerals company engaged in uranium mining and the production of natural uranium concentrate, which it sells to nuclear power plants for carbon-free nuclear energy production. The company operates the two main uranium production centers in the U.S.: the White Mesa mill in Utah and the Nichols Ranch ISR facility in Wyoming.
UUUU has gained 36% over the last three months, outperforming its industry. Recently, UUUU reported that the Pinyon Plain mine produced 230,661 pounds of uranium in June, bringing the second quarter's production total to 638,700 pounds.
Backed by positive production figures, the company anticipates higher uranium sales in the coming quarters and is planning opportunistic uranium sales for 2025 and 2026 while entering into new long-term sales agreements.
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