O'Leary Ditches Big Tech for Uranium, Sees Energy as 'The Trade'
Kevin O'Leary, a well-known venture capitalist and investor, has shifted his investment strategy towards energy infrastructure in preparation for the next 36 months. He's taking an indirect approach to artificial intelligence (AI) technology stocks, focusing instead on power generation and uranium.
O'Leary stated that he prefers to focus on 'power generation over tech equities,' adopting a 'picks and shovels' strategy. This means buying energy stocks related to making electricity from natural gas or turbines, as well as investing in uranium.
The investor noted that technology giants are prioritizing energy as an independent asset, citing Google's $3 billion deal with a Finnish utility company to buy a power contract. The deal had 'nothing to do with AI' and involved no data centers, O'Leary explained.
Nuclear power will play a critical role in meeting the electric grid requirements of computing infrastructure, according to O'Leary. He believes that small modular reactors are the cleanest and cheapest source of electricity, requiring uranium pellets to function.