Fear Is Not an Option for the AI Future BY JASON BODNER, EDITOR, QUANTUM EDGE PRO The meltdown at Three Mile Island in 1979 was a defining moment. Forty-six years on, it’s still one of the first thoughts that come to mind when people think about nuclear power. Fukushima and Chernobyl might come before or after. No one was injured. But the incident brought the prospect of nuclear power at scale to a screeching halt. Realizing that reactors could malfunction and spew radioactive gases into the air shut the door on the whole idea. Investment dried up and nuclear was shelved as an energy solution. In the decades since, there’s been only one nuclear power plant to open its doors: Vogtle Unit 3 in Waynesboro, Georgia, which just came online two years ago. But nuclear power appears on the verge of a revival… thanks to technology’s unquenchable thirst for electric power. Fear is no longer an option when it comes to nuclear power. The biggest, most important companies in the world are making their stand… and rewarding investors in key nuclear companies. Meta Platforms (META) just struck a deal with Constellation Energy (CEG) to buy nuclear power for 20 years beginning in June 2027. Meta will buy the entire 1.1-gigawatt capacity at the Clinton Clean Energy Center in Illinois – enough to power nearly 1 million U.S. homes for a year. It’s the largest power deal in Constellation’s history, surpassing one with Microsoft (MSFT) just last September to do the exact same thing. That deal was even more telling because Microsoft is buying energy produced at Three Mile Island itself, using the second reactor that was undamaged in the accident. Our increasingly tech-driven world is increasingly a power beast. Both AI and cloud computing require massive amounts of energy to power servers stacked in data centers around the world and cool the equipment that generates and stores that data. A recent report from the International Energy Agency forecasts electricity demand at data centers around the world will more than double by 2030. And for those centers optimized for AI, demand is expected to quadruple. As the biggest companies on the planet turn to nuclear power to meet their needs, more investing opportunities present themselves. Let’s look at two companies that currently rate as buys in my Quantum Edge system and one to keep on your watch list. How Big Tech’s Favorite Nuclear Firm Rates Meta and Microsoft turned to the leader in their quest for nuclear power. Constellation Energy is one of the largest nuclear operators in the U.S., and it is also the top-ranked nuclear energy provider in my system with a highly buyable 74.1 Quantum Score. 
Source: TradeSmith Finance Constellation owns and manages 21 nuclear reactors at 12 facilities, and the company also provides power from other sources including natural gas, wind, solar, and hydro. With a Quantum Score of 74.1, CEG is in the optimum buy zone between 70 and 85. The fundamentals and technicals also score in the 70s, which is great. Most other nuclear-power companies can’t match Constellation’s fundamentals. Earnings grew 17.4% last year and averaged 79.6% growth the last three years. Sales growth is solid, and the 15.9% profit margin is quite healthy. The Fundamental Score would be a little higher except for debt, which is more than I typically like to see at 68.3% of equity. I prefer that number to be under 50%, but that is a general rule of thumb that applies to all stocks. I can live with that because CEG’s debt is lower than most major U.S. utility companies. The technicals also line up nicely, thanks to the stock’s 80% surge off its early April lows. The moving averages confirm an uptrend with the 50-day higher than the 100-day, which is higher than the 200-day. My Quantum Edge system registered two green bars in less than a month. Those green bars highlight unusual inflows and related activity as Big Money gets back to buying. In fact, Big Money has bought CEG more often than not since it started trading in 2022 after spinning out of Exelon (EXC). 
Source: MoneyFlows.com Those two most recent signals after the tariff-induced selling follow five green bars back in January that drove CEG to all-time highs. If you look at CEG as simply a utility stock, your first reaction might be to reserve it as a slower-growth income opportunity. But CEG is more of a growth company with bigger long-term potential. CEG rates a buy in my system, well-positioned as a producer of carbon-free energy and a leader in nuclear power’s resurgence. The Supplier The “picks and shovels” strategy is always worth a look, especially in emerging and growing themes. You may not have heard of Sam Brannan, but he was the first millionaire of the California Gold Rush. He didn’t look for gold. He made his fortune selling pots, pans, shovels, and picks to all the gold hunters. You probably have heard of Levi Strauss. He started by producing a new kind of durable pants for the miners. I’m sure you know how that turned out. One of the leading suppliers to both commercial power plants and government agencies is BWX Technologies (BWXT). It supplies nuclear components and fuel for various types of reactors. BWX is the U.S. Navy’s primary supplier of reactors and fuel for its submarines and aircraft carriers. 
Source: TradeSmith Finance BWXT’s 70.7 Quantum Score narrowly slides into my buy zone. For peak performance, it pays to dig a little deeper. In this case, the technicals at 79.4 far outweigh the fundamentals at 58.3. The technicals actually carry slightly more weight than the fundamentals in my Quantum Score algorithms, in part because that’s where the Big Money inflows show up. But the fundamentals are critical for longer-term potential. They are the foundation on which the technicals build. BWXT’s Fundamental Score is not bad, but it’s not at the top of the class either. Sales grew 8.3% last year and averaged 8.4% growth each of the last three years. Earnings increased 10.6% last year, and analysts expect 6.5% growth next year. The technicals are excellent thanks to recent performance. Shares have rallied nearly 50% since April and are now trading near 52-week and three-month highs. That drives the score up. Moving averages are stacked in the right order, as with CEG, and internal metrics like stochastics and relative strength are also strong. I also like that 92.1% of shares are owned by institutions… And they are scooping up shares right now. I see four Big Money inflow signals in the last week and a half, including Tuesday. 
Source: MoneyFlows.com To make BWXT an ideal investment, I would like to see its fundamentals rate a little higher. But you’ll be right more often than not riding those Big Money waves. One to Watch Construction of nuclear plants stopped after Three Mile Island, but technology moved forward. One emerging approach to nuclear power is small modular reactors, or SMRs. As the term says, SMRs are smaller than traditional nuclear plants. That means lower upfront costs, estimated to be about $1 billion to $2 billion per unit instead of $6 billion to $12 billion for the large reactors. It also means they can be built a lot faster – three to five years instead of eight to 10 years. They potentially pave the way for a “micro grid,” meaning companies and utilities can have more and smaller nuclear power sources in more places to better meet demand. NuScale Power (SMR) didn’t just get the ideal ticker symbol, it also generated the first SMR design approved by the Nuclear Regulatory Commission. Unfortunately, the company’s first commercial project was canceled less than two years ago because of rising costs and a lack of contracts. No SMR reactors are operational yet. GE Hitachi is expected to start construction on one in Canada this year with it becoming operational in 2028. NuScale is currently exploring possible international projects, including one in Romania, as well as smaller module designs that would be cheaper to build. 
Source: TradeSmith Finance SMR’s Quantum Score of 65.5 is quite good but not a buy at the moment. As you can see, the fundamentals are still weak, which is why this is a stock to watch. Sales growth is strong, but the company is not yet profitable. It’s not estimated to become profitable until 2030. That can change, of course, and you can hit it big with investing in companies before they make money. But the risk is much higher. My whole approach is high-probability investments – one where I can count on a 70% win rate over time – and a company that’s not yet profitable doesn’t meet that threshold. Still, Big Money has been active recently, with seven inflow signals last month. 
Source: MoneyFlows.com SMR is a cool technology, and NuScale is a cool company, but in my quant analysis, it’s not yet ready for prime-time investing. Companies like CEG are. They have strong fundamentals and technicals to go along with Big Money inflows, giving you the highest odds of “powering” your portfolio higher over time. Talk soon, 
Jason Bodner
Editor, Quantum Edge Pro P.S. Trading veteran Jeff Clark has handed his readers over 1,000 winning trades throughout the years… all thanks to his “chaos pattern” strategy. And to help people make even more money, he recently teamed up with TradeSmith to create a new powerful stock screener that looks for Jeff’s “chaos pattern” every single day. On Wednesday, June 11, at 10 a.m. Eastern, TradeSmith CEO Keith Kaplan will host a special event where Jeff will finally unveil his stock screener for the very first time. Keith and Jeff will also be sharing 10 different opportunities from the screener – for free – during the event. And as an added bonus, we’re making access to Jeff’s live trading blog, Delta Direct, 100% free up until the day of the event. It normally costs thousands of dollars a year to access Jeff’s exclusive research. And today through Wednesday, we’re making it available to everyone – including any new trades Jeff publishes – completely free. (Note that from April 29 through May 30, Delta Direct subscribers had the chance to make cumulative 247% gains on just five trades.) To learn more about Jeff’s upcoming event, and find out how you can access Delta Direct for free until Wednesday, click here now. | 
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