The AI Trade Most Investors Are Missing

In the short term, the market is a voting machine. We can see the results of these daily “elections” across the market.

Dell Technologies (DELL) beats earnings on AI server demand? Shares jump 30%.

Hewlett Packard Enterprises (HPE)? Same move.

But behind the AI server demand are data centers, power-hungry assets that exist in the real world. They need everything from copper and plastic to metal – as well as a power source.

AI players are increasingly turning to nuclear energy. Demand is soaring, but there’s a challenge as demand continues to outstrip new supplies coming online:

Despite rising uranium demand, new supplies will continue to lag for some years, suggesting a regime of continually rising uranium prices. (Source: World Nuclear Association)

That’s a classic recipe for higher prices in uranium. And like many commodity trends, it’s a long-term one. As long as data centers keep getting built out, and as long as uranium demand increases, chances are uranium prices will as well.

That also bodes well across the uranium supply chain.

That includes utility companies that employ nuclear power, where higher demand and higher rates can more than offset higher nuclear energy costs.

Over the short term, the market is a voting machine. Over the long haul, it’s a weighing machine.

And companies that can post real growth and play to a growing trend get a heavier weighting. That’s the case with nuclear-related companies today.

Uranium companies were market darlings in the first half of 2025, then fell out of favor. But the space is starting to come back. To find out one of the most unique names in the space with a surprisingly strong moat in a commodity-backed industry, become a member of Grey Swan Pro — details here.

~ Andrew

P.S. This week on Grey Swan Live!, Mark Jeftovic will join us as we cover the latest developments in the crypto space – including the Clarity Act and the Fate of Dollar 2.0.

Crypto has taken a backseat to the AI trade in recent weeks, but those lamenting the poor performance of crypto may not have much longer to wait with so many positive catalysts on the horizon.

If you have any questions for us, send them to Feedback@GreySwanFraternity.com.

In the short term, the market is a voting machine. We can see the results of these daily “elections” across the market.

Dell Technologies (DELL) beats earnings on AI server demand? Shares jump 30%.

Hewlett Packard Enterprises (HPE)? Same move.

But behind the AI server demand are data centers, power-hungry assets that exist in the real world. They need everything from copper and plastic to metal – as well as a power source.

AI players are increasingly turning to nuclear energy. Demand is soaring, but there’s a challenge as demand continues to outstrip new supplies coming online:

Despite rising uranium demand, new supplies will continue to lag for some years, suggesting a regime of continually rising uranium prices. (Source: World Nuclear Association)

That also bodes well across the uranium supply chain.

That includes utility companies that employ nuclear power, where higher demand and higher rates can more than offset higher nuclear energy costs.

Over the short term, the market is a voting machine. Over the long haul, it’s a weighing machine.

And companies that can post real growth and play to a growing trend get a heavier weighting. That’s the case with nuclear-related companies today.

~ Andrew

P.S. This week on Grey Swan Live!, Mark Jeftovic will join us as we cover the latest developments in the crypto space – including the Clarity Act and the Fate of Dollar 2.0.

Crypto has taken a backseat to the AI trade in recent weeks, but those lamenting the poor performance of crypto may not have much longer to wait with so many positive catalysts on the horizon.

If you have any questions for us, send them to Feedback@GreySwanFraternity.com.

Copper and resources are sending us a cleaner market signal than AI stocks.

Channeling Ludwig von Mises, we observe this morning that price is not just a number; it’s information. Price reflects what buyers and sellers collectively believe: demand, scarcity, fear, speculation, disappointment, future expectations and available supply.

When prices rise, and inventories fall at the same time, the message is usually straightforward: buyers need the stuff, and there is not enough of it.

A low VIX does not predict disaster. It measures complacency. A serial skeptic will read it as the calm before a storm. We shook off that feeling this morning and opted to pursue an opportunity instead.

Here goes:

A VIX reading below 15 means the market is not pricing in much near-term trouble, even though there are obvious risks still sitting in the room: Iran, oil prices, memory chip speculation, circular financing, high valuations, epic high concentrations, spiking long-term interest rates, a regime change at the Fed, a meltdown in Japan and a historic deficit and rising national debt.

Money is not flowing in a clean, straight line from outside investors to productive businesses. The firms at the top are investing in and buying from each other.

Microsoft and OpenAI are the easiest examples to follow.

Microsoft says OpenAI has contracted to purchase an additional $250 billion in Azure services, while Microsoft continues to account for $13 billion in funding commitments to OpenAI as an investment.

At this stage, it’s a stock picker’s market.