Felix Prehn from Goat Academy highlights a little-known U.S. company that could sit at the center of the AI energy story. While many investors chase large chip makers, he points to a $2B materials producer that may become the only American supplier for key inputs needed by AI data centers. He explains why the setup looks strong after a breakout, and why patience on pullbacks can matter.
AI data centers use a lot of electricity. Analysts at Goldman Sachs expect power use to surge as models grow. Solar and wind help, but they do not run all day and all night. Data centers need steady, always-on power. This is called baseload power. Today, the only proven, low-carbon baseload option at scale is nuclear power. Nuclear plants run 24/7 and do not depend on weather.
That is why uranium matters. Uranium is the fuel used by nuclear reactors. Prices for enriched uranium recently hit record highs. Enriched uranium is uranium that has been processed to raise the share of the U‑235 isotope so reactors can use it. When prices rise, producers with permits and capacity can benefit.
Prehn focuses on a U.S. producer trading under the ticker “UUUU” (Energy Fuels Inc.). It stands out for three reasons:
- Licensed and producing: While rivals wait for permits, this firm is already producing uranium. Management lifted 2025 production guidance to about 350,000 pounds, a 59% increase.
- High-grade assets: The company’s Pinion Plain Mine holds some of the highest-grade uranium in North America.
- Rare earths edge: The company became the first American producer of heavy rare earth oxides at 99.9% purity, including dysprosium. Heavy rare earths are essential for permanent magnets used in electric motors, wind turbines, planes, ships, and defense systems. The firm’s projects could cover a meaningful share of U.S. needs for samarium, terbium, and dysprosium. This supports both energy and national security goals.
Large technology companies are signaling long-term demand for reliable power. Recent deals include:
- A major commitment to restart a U.S. nuclear plant dedicated to AI data centers.
- A 500 MW nuclear agreement, the first of its kind by a large tech company.
- Multi‑gigawatt nuclear targets to power cloud operations.
The balance sheet also matters. The company holds strong working capital and reports no debt. This gives it flexibility to invest, ride out price swings, and even acquire assets. It recently bought Base Resources to expand rare earth exposure.
How to think about the stock setup
- Support and resistance: Prehn observes support near the mid‑$8 range and resistance around $10. He notes a recent 10% up day on strong volume. These levels reflect where institutions often buy and sell.
- Entry discipline: He labels buys inside the range as “trader setups” with higher risk. A more careful approach is to wait for a close above prior highs around the low $10s to confirm strength.
- Position sizing: He stresses small initial positions because uranium and rare earth names can be volatile. If gains compound, he scales up gradually.
Key terms explained
- Baseload power: Electricity that runs all day and night to meet constant demand.
- Enriched uranium: Uranium processed to increase the U‑235 content so reactors can use it.
- Rare earth oxides (REOs): Refined materials from rare earth elements used to make high‑performance magnets and electronics. Heavy rare earths (like dysprosium and terbium) are scarcer and critical for heat‑resistant magnets.
- Support/resistance: Price areas where buying (support) or selling (resistance) pressure often appears. Traders use these to plan entries and exits.
Risks to note
- Commodity swings: Uranium and rare earth prices can move fast on policy shifts, supply news, or demand surprises.
- Policy and permits: Nuclear and mining are highly regulated. Rules can change.
- Execution: Expanding production and refining heavy rare earths at scale is complex.
Why this matters for investors
This single U.S. name offers exposure to two big themes: the AI-driven nuclear power build‑out and America’s push for rare earth independence. That mix is unusual. For many, the smarter path is to watch price levels, size positions modestly, and add only as the trend proves itself.
For more on Felix Prehn and Goat Academy’s approach, see the background here:Felix PrehnGoat Academy.