Avoid speculative AI derivative power plays
The bear case argued is that speculative utility and nuclear stocks positioned as AI 'picks and shovels' plays will suffer heavily when the core AI trade unwinds.
The argument
The guest warned against buying speculative nuclear names like Oklo, which he labeled as highly problematic. He argued that when the AI trade comes unstuck, derivative power and utility plays will take on water.
The thesis, stress-tested
✓ What validates it
- ✓A correction in mega-cap tech AI spend leading to cancellations or delays in data center power contracts
▸ Risks discussed
- ▸Continued massive capital expenditure commitments from hyperscalers for data center power
Hear it yourself
"The problem with it was some of the names you mentioned, some of the utility stocks with the AI trade comes unstuck, and I believe it will. I think a lot of those derivative plays are going to take on water."
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