Artificial intelligence (AI) stocks are going parabolic.
Nvidia (NVDA)—the world’s leading AI stock—has soared 40% since the start of the year. And it’s up 45% since I made it my Trade of the Week on December 12.
Super Micro Computer (SMCI)—another global AI leader—has performed even better.
It’s rallied 133% since the start of the year and is easily the hottest stock on the planet! Members of my premium trading service, RiskHedge Live, are now sitting on 87% gains in SMCI after just 11 weeks.
Arista Networks (ANET)—which makes data center products critical to AI and cloud computing—is also up 71% since I recommended it back in July.
And that’s just to name a few.
But here’s the thing…
Tech stocks aren’t the only way to cash in on the AI revolution. You see, most folks don’t realize just how much energy artificial intelligence requires.
According to the International Energy Agency:
Training a single model uses more electricity than 100 US homes consume in an entire year. In 2022, Google reported that machine learning accounted for about 15% of its total energy use over the prior three years.
In other words, the AI megatrend can’t exist without cheap, abundant energy. That’s one of the reasons I recommended the Global X Uranium ETF (URA) in August… and it’s climbed 38% since.
This also brings me to my new Trade of the Week: Uranium Energy Corp. (UEC).
UEC is one of America’s leading uranium companies. Below, you can see UEC is in a strong uptrend.
And after breaking out to new multi-year highs early last month, I believe UEC is about to begin its next major leg higher:
Source: StockCharts
I suggest picking up a starter position in UEC today. I believe it can hit $15 within the next 12–18 months.
Exit your position if UEC closes below $6.75. That gives us a risk-reward ratio of 5:1 on this trade.
Action to take: Buy UEC at current market prices.
Risk management: Exit your position if UEC closes below $6.75.
Justin Spittler
Chief Trader, RiskHedge
