Jun. 26 at 2:46 PM
The power trade is an interesting one to look at here, and we’ve invested in a name with 100% upside that is outside the two main categories in this theme.
(Full thesis linked)
AI needs power, etc… that’s known, that’s the baseline thesis.
You have the IPPs on one side (GEV VST CEG TLN NEE etc…) who are combating this through raising generation capacity across the board and investing into nuclear. The issue here is the grid itself is the bottleneck not generation. You can generate all the power you want but reliably transmitting it to its destination is the real challenge here.
On the other hand, you have the on site power names (
$BE,
$CAT,
$FCEL,
$EOSE,
$PLUG, etc…) solving this issue by generating power on site. The issue here is that many of these names are still early stages and the capacity of their generation will be limited compared to the baseload utilities,
How to solve this?
Make the grid smarter. We have our pick:
https://kryptonresearch.substack.com/p/ai-powers-ahead
