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DeepSeek Dip: Is the Knee Jerk Nuclear Energy Sell-Off a Buying Opportunity?
Marketbeat ^ | 02/05/2025 | Written by Jeffrey Neal Johnson | Reviewed by Shannon Tokheim

Posted on 02/05/2025 8:52:36 AM PST by SeekAndFind

The stock market's response to emerging technologies can sometimes be as volatile as the innovations themselves. A recent example of this occurred on January 27, 2025, when a sharp sell-off hit the nuclear energy sector. This sudden downturn was triggered by news surrounding DeepSeek, a new artificial intelligence (AI) model touted for its potentially lower energy consumption compared to existing AI technologies.

The market, seemingly fearing that a less power-hungry AI could diminish the need for energy production, reacted negatively, impacting companies across the energy sector. However, a closer examination suggests that this market dip represents a significant overreaction, obscuring nuclear power's enduring, long-term growth narrative.

This temporary downturn could be a strategic entry point into fundamentally sound companies that are well-positioned to benefit from the sustained global demand for reliable, carbon-free baseload power.

Beyond the Algorithm: Debunking the DeepSeek Panic

While artificial intelligence's energy consumption, including large language models and data centers, is a valid concern, it's only one piece of the global energy puzzle. The market's reaction to DeepSeek's entrance seems to disregard more significant factors influencing the energy future. The International Energy Agency (IEA) forecasts record-breaking nuclear power usage, emphasizing the persistent and rising demand for clean, dependable energy sources globally.

The demand for energy, especially reliable baseload power, is escalating due to several significant trends unrelated to AI's development. A key factor is industrial electrification, where industries increasingly switch to electricity-powered processes and move away from fossil fuels.

This shift necessitates a consistent and substantial electricity source. Additionally, urbanization and a growing global population concentrated in cities are also driving energy demand. Furthermore, decarbonization efforts to address climate change are prompting a global shift from carbon-emitting fossil fuels to cleaner and more renewable energy sources.

Nuclear energy plays a crucial role in this transition as a scalable and established source of carbon-free baseload power.

In an increasingly unpredictable global terrain, nations are prioritizing energy security to ensure stable and reliable energy sources. This reduces dependence on fluctuating global markets and potentially unstable regions.

With its efficient fuel and extended operational lifespans, nuclear energy is a strategic asset for achieving energy independence. This sentiment is supported by recent comments from utilities, reactor developers, and industrial energy users, who are extending financial support to ensure future access to clean, reliable, and scalable nuclear power.

The Opportunity in Nuclear

The recent decline in nuclear energy stocks, caused by concerns about DeepSeek AI's energy efficiency, seems to be an overreaction of the market. AI's energy use is undoubtedly a factor to consider, but it's important to view it in the context of overall global energy demand. The ongoing need for clean, reliable baseload power will continue to drive growth in the nuclear industry.

The current market presents a compelling investment opportunity for companies shaping the future of energy. The nuclear sector is experiencing increasing support, and companies in this sector are ready to meet rising global energy demands. These combined factors make now an ideal time for investors to take advantage of nuclear power's long-term growth potential.


TOPICS: Business/Economy; Computers/Internet; Society
KEYWORDS: ai; deepseek; electricity; energy; ev; fission; fusion; investment; nuclear; nuclearenergy; nuclearpower; nuclearreactors

1 posted on 02/05/2025 8:52:36 AM PST by SeekAndFind
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To: SeekAndFind

The coming collapse in Wind and Solar will also boost Nuclear.

These not so renewable energy source will die soon. They are simply unaffordable, unreliable and ecologically damaging.


2 posted on 02/05/2025 9:12:47 AM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: SeekAndFind

oklo IS OWNED BY sAM Altman, THE chat gpt guy
Who do you think he is going to use to power the data centers (eventually) They will probably use natural gas powered generators first (which could be Conocco Phillips) but will transition to OKLO reactors as soon as the technology matures is it early ahhh yea but thats kind of the point I have 200 shares just waiting


3 posted on 02/05/2025 9:13:15 AM PST by calljack (Sometimes your worst nightmare is just a start.)
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To: calljack

I have a diversified nuke ETF with OKLO as the top holding. It also holds BWXT, another company in the SNR space which you may be familiar with.


4 posted on 02/05/2025 9:29:13 AM PST by Starboard
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To: Pontiac

I believe you’re right about wind and solar. They are impractical and political support for these alternative energy sources is waning. Small nuclear reactors will soon replace them IMO.


5 posted on 02/05/2025 9:33:54 AM PST by Starboard
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To: Starboard

Whats the ETF im interested in ETF’s more than individual players i like sectors got into PLTR 2 years ago could not be happier


6 posted on 02/05/2025 10:05:40 AM PST by calljack (Sometimes your worst nightmare is just a start.)
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To: Starboard

Not sure about soon, I heard 5-7 years before the tech is ready for prime time. but things are happening at breakneck speed.


7 posted on 02/05/2025 10:07:00 AM PST by calljack (Sometimes your worst nightmare is just a start.)
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To: calljack

NUKZ. Volume and AUM is small and the expense fee is a bit high but at this early stage investing in individual players seems pretty risky to me so I went with the sector ETF and will see how it trends.


8 posted on 02/05/2025 10:20:18 AM PST by Starboard
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To: calljack

While commercialization is not right around the corner it could happen sooner rather than later because demands for new energy solutions are rising with the explosion of data centers, AI, and crypto mining. I also think the new administration will be encouraging innovation in the energy sector. This could be one of those “slowly, then suddenly” things. JMHO


9 posted on 02/05/2025 10:29:18 AM PST by Starboard
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To: calljack
Terrapower broke ground for their new Natrium reactor in Kemmerer, Wyoming in June. It is supposed to be online in 2029 and was only delayed by HALEU fuel availability. Unfortunately the company is owned by Bill Gates and includes private investor Warren Buffet.
10 posted on 02/05/2025 12:58:10 PM PST by 103198 (It's the metadata stupid...)
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To: Pontiac

What we want to develop need to develop our Thorium reactors not nuclear reactors. China is working on this right now.


11 posted on 02/05/2025 8:06:50 PM PST by Captain Peter Blood
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To: Captain Peter Blood

It will be interesting to see how well the Chinese Thorium Salt Reactor does.

They are supposed to start construction this year.

https://spectrum.ieee.org/chinas-thorium-molten-salt-reactor


12 posted on 02/06/2025 6:31:08 AM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: 103198

“Terrapower broke ground for their new Natrium reactor in Kemmerer, Wyoming in June. It is supposed to be online in 2029 and was only delayed by HALEU fuel availability. Unfortunately the company is owned by Bill Gates and includes private investor Warren Buffet.”

If the USA had told Jimmy Fing Carter to pound sand and overrode his EO banning reprocessing tech the USA would be the world leader in that field. We would have thousands of tonnes of PU239 from spent fuel already in the stockpile for thousands of fast fission reactors to be running right now today. No need to be Russia mother may I please have some 20% enriched uranium we would have 15% MOX fuel here for use and thousands of years worth of depleted uranium for fast spectrum breed reactors to burn. Jimmy is the reason we a re dead last in fast reactors tech. I would piss on his grave if it wasn’t a federal offence.


13 posted on 02/06/2025 12:02:00 PM PST by GenXPolymath
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To: Captain Peter Blood
There is not millions of tonnes of already no need, refined and purified thorium just sitting in stockpiles. There is well over 100,000 tonnes of spend fuel nearly every gram of it can make one megawatt days worth of energy. Then addin the depleted uranium from enrichment plants sitting in waste storage that's millions of tonnes each and every gram is fuel for fast fission or fusion fission hybrid breeders. Thorium is a pipe dream, the U238U233 anything you can do with a neutron with thorium you can do at least twice if not three times better with uranium. It's the PU239 that people who have weak knees get all butthurt about get over it the genie is out any state that wants weapons can get them now it's a political problem not a technical ome.
14 posted on 02/06/2025 1:03:42 PM PST by GenXPolymath
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To: GenXPolymath

I completely concur. And part of that was the killing of the Clinch River project.

He also killed the 500 ship Navy - along with countless other idiotic, Commie actions.

It is really a federal offense?


15 posted on 02/06/2025 5:19:25 PM PST by 103198 (It's the metadata stupid...)
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To: 103198

I assume he was buried in a national cemetery...So yeah defacing,or otherwise desecrating a grave on federal land is well gonna be a felony.

He single handedly killed any closed fuel cycle in the USA and with it thousands if not millions of years worth of clean energy. No one man is responsible for a greater damage to the American energy infrastructure and supply, it is a crime against humanity as a whole and every future generation saddled with spent nuclear fuel vs abundant energy and only solid glass fission products that need to be buried for 300 years.


16 posted on 02/07/2025 8:34:04 AM PST by GenXPolymath
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To: GenXPolymath
It appears you have a correct assumption regarding his grave site - see https://www.findagrave.com/memorial/6734/jimmy-carter. Nuts...

I believe with all of the SMR designs, we'll see the use of better fuel cycles which will include Pu production and fission. TerraPower backtracked on their traveling wave core concept and have apparently jumped over to the PRISM core. It looks like the others are setting up high burn-up cycles through the Pu chain.

17 posted on 02/10/2025 10:44:56 AM PST by 103198 (It's the metadata stupid...)
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