Simple and Brutal: No Nuclear Power, No AI - Why American Atomics, Infineon, and Aixtron Play Key Roles

American Atomics: Potential Still (Largely) Ignored by the Market

AI is undeniably the biggest driver of the rapid rise in electricity consumption. Base-load capability and climate-friendliness are crucial factors alongside availability and price. While natural gas is capable of providing base-load power, it generates emissions. The downside of solar and wind is the lack of power during periods of low sunlight and low wind. This is pushing nuclear energy back into the spotlight.

Hyperscalers like Microsoft, Meta, Amazon, and Google are particularly on the hunt for CO₂-free electricity capable of providing base-load power. Microsoft and Meta have already taken a leading role in the industry and are securing long-term nuclear power. When does American Atomics come into play on the supply side?

The Canadians are positioning themselves with their strategic "rock-to-reactor" approach across all stages of the fuel supply value chain in North America. This spans from uranium exploration and mining through refining and conversion to the production of specialized nuclear fuels. A particular focus is on the future production of HALEU, a key product for modern nuclear reactors.

The goal is to establish a robust North American supply of nuclear fuels that is independent of foreign sources. To this end, the company has entered into a number of partnerships and collaborations. Of particular note is the collaboration with the US Department of Energy and other companies in the Nuclear Fuel Cycle Consortium. The joint venture with CVMR is important from an operational standpoint, as the two partners intend to construct the first modular and scalable uranium mill and processing unit in the US.

The flagship Big Indian project is located in the historically productive Lisbon Valley District uranium basin in the US state of Utah. The little-explored eastern side of the valley is generating significant excitement, as American Atomics suspects it holds great potential.

Furthermore, the company is continuing to develop the Nuvemco project in the US state of Colorado and the Kenora project in the Canadian province of Ontario. In April, the Canadian company also acquired the Blue Streak project in Colorado. The property contains several mines that have historically produced vanadium and uranium. In total, Blue Streak comprises 194 mining concessions. American Atomics recently published a mineral resource estimate for the Blue Streak project. The current share price of CAD 0.30 and market capitalization of CAD 20 million do not reflect the positive results or the company's full potential.

Infineon: AI Boom Drives Share Price

The German company is among the world's leading manufacturers of power semiconductors and microelectronics. Infineon develops chips that efficiently control, convert, and distribute electrical energy. The company holds a particularly strong position in power semiconductors based on silicon carbide (SiC) and gallium nitride (GaN). These are becoming increasingly important for modern energy and charging infrastructures.

AI is boosting the stock price, especially in recent weeks. The logic behind the growth potential is clear: data centers require more power, and that power must be efficiently delivered to processors and GPUs. The share has been on a one-way trajectory in recent months, recently breaking the EUR 80 mark and now clearly heading toward an all-time high. STMicroelectronics and HPE recently reported strong results and raised their forecasts, giving the stock price another boost. A few weeks ago, Infineon had already raised its own targets somewhat, driven by its strong AI business.

Amid all the euphoria, investors should not forget that Infineon serves a broad industrial customer base and is therefore subject to certain cycles. Recently, analysts at Jeffries raised their price target for Infineon shares to EUR 96.

Aixtron: What Comes After the Price Surge?

For a long time, Aixtron was viewed as a hidden beneficiary of the AI trend. The stock was then "awakened" from levels well below EUR 20, and now trades at close to EUR 60. The company is currently valued at around EUR 6 billion. The investment thesis has not fundamentally changed: the AI and energy boom remain key drivers of both growth and profits.

As one of the leading manufacturers of deposition systems for producing modern semiconductors based on gallium nitride (GaN) and silicon carbide (SiC), the company has positioned itself at a key point in the value chain. These materials are becoming increasingly important because they are more powerful and efficient than traditional silicon chips.

Another promising field lies in optical data communication. AI requires not only enormous computing power but also fast data connections. Here, too, Aixtron ranks among the industry's most important equipment suppliers. In recent weeks, the group has announced a series of landmark orders. Many analysts will likely raise their price targets even further.

All three companies are positioned in exciting growth sectors. The major connecting themes are AI and power consumption. As technological beneficiaries, the stock prices of Infineon and Aixtron are likely to rise a bit further. However, American Atomics offers the greatest leverage. The goal is the gradual development of an integrated North American value chain for nuclear fuel supply. The market has not yet fully priced in the latest news regarding the mineral resource estimate for the Blue Streak project, nor the company's overall potential, which is valued at just CAD 20 million.