Cathie Wood‘s Ark Invest made strategic shifts in its portfolio this week, prominently involving the nuclear sector, just before President Donald Trump unveiled a significant private sector investment plan aimed at bolstering AI infrastructure. Ark Invest divested from Oklo (OKLO), a nuclear power startup championed by OpenAI’s Sam Altman, selling 50,333 shares, while simultaneously investing in Cameco (CCJ), a uranium refiner, by purchasing 17,504 shares. This move came as Trump announced a $500 billion initiative for AI infrastructure, highlighting the role of nuclear energy in supporting the growing demands of AI data centers.
Despite Ark Invest’s sell-off, Oklo’s stock has performed strongly, rising over 38% since Tuesday and nearly 66% this week, currently trading at $42.81, up 10.37% on Friday. This surge in stock price can be attributed to heightened interest following Trump’s infrastructure announcement, which included plans for a joint venture named Stargate involving Altman’s OpenAI, SoftBank, and Oracle. This venture aims to build data centers critical for AI training, with nuclear power seen as a key component to meet the projected increase in electricity demand.
The market responded positively to these developments, sparking a broad rally in nuclear stocks. Cameco, boosted by Ark Invest’s investment, saw a 7.65% weekly gain, with shares currently trading at $55.71 — down 2.04% after reaching an intraday high of $58.33
The enthusiasm around nuclear power’s role in AI was further amplified by Wedbush Securities analyst Dan Ives, who raised his price target for Oklo to $45 from $26, suggesting a 5% potential upside from the stock’s current level. Ives’s optimism is grounded in his belief that the Trump administration’s focus on AI signifies the beginning of a larger initiative where nuclear energy will be pivotal. He emphasized Oklo’s strategic position under Altman’s leadership in the AI and nuclear sectors, pointing towards a significant role in what he describes as the foundation of the 4th Industrial Revolution.
This week’s market movements and analyst insights underscore a growing synergy between AI development and nuclear energy, with companies like Oklo and Cameco at the forefront. The strategic investments and divestitures by influential investors like Cathie Wood are indicative of a broader market trend recognizing the critical intersection of energy infrastructure and tech innovation. As AI continues to expand, the demand for reliable, clean energy solutions like nuclear power is likely to grow, potentially reshaping investment landscapes across these industries.
h/t IBD
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