$Centrus Energy(LEU.US)
Context: The nuclear energy sector has the potential to benefit from the energy demand required by the AI infrastructure. I selected LEU to gain direct exposure to the nuclear fuel supply chain. This energy source has advantages such as providing carbon free power to support expanding AI data center compute needs. Centrus Energy is a leading supplier of enriched uranium and specialized nuclear fuel such as HALEU for advanced small modular reactors.
My trade: I initiated a new long position in Centrus Energy to take advantage of the recent stock market correction. Since stock price has been trending down, I will monitor and add more shares progressively if stock price corrects more to lower my cost price more while waiting for price recovery.
Takeaway: Investing in high beta thematic sectors like nuclear energy requires managing price volatility, since early stage infrastructure plays can experience drawdowns even if having strong demand. All investments come with risk, so due diligence is needed, especially true for individual stocks which are higher risks.