Artificial Intelligence has a major flaw.
It’s a problem so big, it could immediately halt AI’s rapid growth. However, Marc Lichtenfeld has found a way to profit from the solution with a “Uranium Profit Package.”
The Teaser
This isn't about the loss of jobs caused by the rise of AI, AI robots taking over the world like in Terminator. It's far more serious and more likely than that.
Marc Lichtenfield specializes in one thing – generating income. He's the chief income strategist at The Oxford Club and has penned books like You Don’t Have to Drive an Uber in Retirement, discussing how to make passive income investing.
We have previously reviewed his “Ultimate Dividend Package” and “Ultimate Passive Income Play” teasers.
This one has a similar conclusion – passive income plays.
How we get there is far different though.
Marc correctly points out that the amount of AI coming online is increasing by a factor of 10x every six months.
At this pace, AI is almost certain to have a bigger impact than any technology over the next 30 years.
There's only one thing holding it back…power!
We have already covered this at greater length in another teaser review, so I will spare you the long-winded explanation and cut to the chase.
As AI continues to grow, electricity demand will skyrocket.
This will cause utility bills to shoot through the roof. Business costs will soar as well. Inflation will come roaring back, and rolling blackouts are a possibility as well.
AI Energy Crisis
So the energy grid is like the Griswald family home in Christmas Vacation and AI is like the 50 power cables all being plugged into one outlet.
Eventually the system will overload and this could happen sooner than we think.
However, in every crisis there is opportunity.
Marc says “The AI energy crisis is creating one of the most obvious, powerful, and profitable investment opportunities he's ever seen.”
The solution to the crisis lies in the hands of just a few select companies.
The Pitch
All of these are revealed across a series of three special reports called the “Uranium Profit Package.”
“The package” is available if we subscribe to The Oxford Income Letter for $49 for the first year. A sub includes a 365-day money-back guarantee, twelve monthly issues of the newsletter, two special bonus reports, and access to four portfolios: Instant Income, Compound Income, High Yield, and Fixed Income.
The Answer to the AI Energy Crisis
One thing is crystal clear…
The world is going to need far more reliable energy going forward.
So, the choice we have as a country is to either ramp up electricity production right away or risk a major economic downturn.
We already know about drill, baby, drill and we will see bull markets in oil, natural gas, and coal.
However, these alone won't solve the AI Energy Crisis.
One source is set up to provide massive amounts of clean, efficient, consistent, and powerful electricity going forward.
It's a source that big tech is going all in on.
All In On Nuclear Power
Over the past few years, investments by Microsoft, Google, and Amazon have laid the foundations for advanced nuclear reactor deployment.
For example, Amazon has invested more than $500 million to develop small modular reactors (SMRs). Google has signed an agreement to purchase power from multiple SMRs and Microsoft has signed a deal to purchase power from a nuclear site expected to reopen in 2028.
As the rush for electricity accelerates, nuclear power could become the most valuable commodity on the planet.
Marc believes the biggest opportunity is in a brand new nuclear technology that is “cheaper, more efficient, more mobile, and most of all faster to build than anything that’s existed before“.
He's talking about Small Modular Reactors or SMRs, which are basically mini-nuclear power plants.
Not only are SMRs more compact and cost less to build, but they also use liquid sodium technology as a coolant, so these nuclear plants can’t melt down.
As the SMR buildout occurs, uranium, which nuclear power relies on, will be one of the best-performing commodities over the next decade and beyond.
A few companies are stepping up to produce enough of it to meet the surge in demand. Let's find out what they are.
Revealing Marc Lichtenfeld's 3 Uranium Stocks
Marc isn't stingy with the clues, we get several for each of his picks, starting with…
Stock #1: America’s Biggest Up-and-Coming Uranium Company
- It is the only American miner with more than one Uranium mine in the United States today.
- In the past year, they’ve brought two new production sites online in South Texas, with five more expected to come online over the next two years.
This is enCore Energy Corp. (Nasdaq: EU).
- enCore is the only U.S. uranium company with multiple mines and Central Processing Plants in operation.
- The company started uranium production at two South Texas sites in 2023 and 2024 and hopes to bring four more online by 2027.
Stock #2: The Company Set to Dominate the Small Modular Reactor Market
- It owns the only large, commercial nuclear equipment manufacturing facility in North America.
- The company has delivered over 400 mini-reactors to the U.S. Navy for use in submarines and aircraft carriers.
- They’ve developed a mini-nuclear reactor small and light enough to be transported via rail, ship, or truck. It’s the world’s first mobile SMR.
The first clue was enough to tell us that this is BWX Technologies Inc. (NYSE: BWXT).
- BWX's Cambridge production facility is the only large, commercial nuclear equipment manufacturing facility in North America.
- The company has been awarded contract options worth nearly $1 billion by the US Naval Nuclear Propulsion Programme.
Stock #3: The Nuclear Operator with 2.5X More Capacity Than Any Competitor
- The company operates 21 nuclear units across 12 sites, with 21 GW of baseload power.
- Operating income has gone from just $362 million in 2021 to $3.7 billion in 2023. Growth of more than 10X in just three years.
Marc's pick here is Constellation Energy Corp. (Nasdaq: CEG).
- Constellation operates 21 nuclear reactors at 12 power-generation sites across the Midwest the mid-Atlantic, and the Northeast.
- Operating income has grown from $256 million in 2020 to $3.3 billion in the last fiscal year.
However, we're not done yet, as Marc has a couple of bonus picks that he teases.
Bonus Pick #1: The #1 Income Energy Play
- This company liquifies natural gas through six liquefaction facilities, with its production amounting to 30 million tons of liquified natural gas per year.
- It pays out a fat 7% dividend yield.
The first bonus pick is Cheniere Energy Partners LP (NYSE: CQP).
- Cheniere's Sabine Pass terminal has six fully operational liquefaction units, with a total capacity of 30 million tonnes per annum.
- It currently sports a 5.2% yield after the stock appreciated by almost 12% since the start of the year.
Bonus Pick #2: Collect Massive Dividends on the Explosion in Data Centers All Over the Country
- This REIT operates a total of 260 data centers in 71 cities across 33 countries on six continents.
- It has raised dividends every year for the past 10 years.
Equinix Inc. (Nasdaq: EQIX) is the final pick.
- As of Q3 2024, Equinix has 260 data centers in 71 cities across 33 countries on six continents.
- The company has increased dividends over the last 10 years by about 11% annually.
High yields, Low Volatility, and Big Growth?
This is what Marc promises his readers.
Do these picks fall in line? Here are some quick thoughts on each:
enCore Energy: The most diversified U.S. uranium company. A play requiring a long time horizon.
BWX Technologies: A nuclear component supplier ready to break out as more SMRs are built.
Constellation Energy: A utility originally founded in 1816. As low volatility as it gets with above-average upside.
Cheniere Energy: A natural gas wholesaler to energy companies, utilities, and others. It makes sense to own a stake for vertical integration down the supply chain.
Equinix: EQIX or Digital Realty (NYSE: DLR) are both solid data center REIT plays.
Overall, all of Marc's picks have a strong buy case with the only real downside being valuation on some. No extreme valuations though, and if you're a dollar-cost-averaging fan like me, this largely solves the problem.
Quick Recap & Conclusion
- Marc Lichtenfeld believes Artificial Intelligence has a major flaw, but he's found a way to profit from the solution with a “Uranium Profit Package.”
- The only thing holding AI back today is power. However, a few select companies are stepping up with tangible energy solutions. Namely, nuclear power, which requires lots of uranium.
- The names of these companies are revealed across a series of three special reports called the “Uranium Profit Package.” “The package” is available if we subscribe to The Oxford Income Letter for $49 for the first year.
- Fortunately, this step can be skipped, as we were able to reveal all three picks and two bonus picks for free. They are enCore Energy Corp. (CVE: EU), BWX Technologies Inc. (NYSE: BWXT), Constellation Energy Corp. (Nasdaq: CEG), Cheniere Energy Partners LP (NYSE: CQP), and Equinix Inc. (Nasdaq: EQIX).
- All five are solid picks to play the first phase of the AI market – the infrastructure buildout.
Is there an AI infrastructure stock that you like, but wasn't mentioned? Let us know in the comments.