Long-term investors are encouraged to focus on stocks associated with the AI Energy Trade, which is expected to drive a 25% increase in U.S. electricity demand by 2030 and a staggering 75% to 100% growth by 2050. Notable companies like Cameco (CCJ) and GE Vernova (GEV) are highlighted as key players in this megatrend, with their growth strengthened by increasing energy demands driven by AI technologies.
Taiwan Semiconductor Manufacturing Company (TSM) has indicated a booming AI spending environment, raising its capital expenditure guidance to between $52 billion and $56 billion for 2026, with an expected revenue growth of 30% and a projected total AI hyperscaler capex hitting $530 billion. Major tech companies, including Amazon and Meta, are securing long-term power agreements to support their expanding data center needs amid an impending surge in U.S. electricity demand.
Specifically, Cameco, the world’s second-largest uranium miner, is vital for U.S. nuclear energy expansion, anticipating a 100% earnings increase in FY25. Meanwhile, GE Vernova is set to grow its adjusted EPS by 31% in FY25, with ongoing plans to deploy next-generation nuclear technologies, reinforcing its position in the energy landscape.
