Affiliation Disclosure & Disclaimer:
The managing principal of Ridire Research is affiliated with a private investment fund that holds long positions in the securities discussed herein (VRT, CCJ, TLN, VST, CPX, ETR, BKH) which could influence the views expressed. This publication is for educational and informational purposes only. Any performance referenced is illustrative and tracked on a per-article basis, not as part of a model portfolio or investment program. Nothing herein constitutes investment advice, a recommendation, or a solicitation. → Ridire Research Substack Disclaimer
Every AI data center needs a reliable supply of electricity, equipment to distribute it and cooling systems to remove the heat. Those requirements create opportunities for businesses whose work continues long after the first servers are installed.
The recent selloff has prompted us to take a closer look at that opportunity. Power for AI introduces a seven-stock North American research basket spanning nuclear fuel, electricity generation, power equipment and cooling.
The basket brings together three groups:
Cameco (CCJ) and Vertiv (VRT): nuclear fuel and reactor services, alongside the electrical and cooling equipment used inside data centers.
Talen Energy (TLN), Vistra (VST) and Capital Power (CPX.TO): generators with operating plants that can supply electricity under long-term agreements.
Entergy (ETR) and Black Hills (BKH): businesses investing in generation and infrastructure to serve new demand.
These companies earn their returns in different ways. An existing power plant can benefit from better contract terms. A new plant must first justify its construction and financing costs. A cooling supplier needs to convert orders into profitable deliveries. Nuclear fuel demand depends on what happens to the reactors themselves.
Our focus is how much of that opportunity becomes cash and earnings for each equity. Growing electricity demand matters, but so do maintenance, debt, dilution and the entry.
The full report sets out the proposed basket weights, the investment case for each company, valuation references, key agreements and the milestones that will test the thesis. It also examines where headline growth can overstate the benefit to shareholders.
Download the full Power for AI report below for the allocation and the reasoning behind all seven positions.
