"Undoubtedly, even a steep correction (think 40-50%) might not be enough of a discount should an AI bubble finally end up popping, dragging down many of the stocks that touch AI, from small nuclear reactor (SMR) plays to equipment providers to the semi plays and the frontier model makers themselves. Indeed, if there's tremendous strength, driven by the AI revolution narrative, one has to imagine that there could be proportional weakness should the AI trade turn on itself."
"Either way, I do think that energy remains one of the bottlenecks as AI data centers go live. Of course, AI spending could retreat a bit, but those data centers are likely to stay online and operating at full capacity (or close to it), and they're going to need a power source. All considered, I view the energy side of the AI trade to be a rather intriguing place to look for growth."
"First up, we have the hottest nuclear energy play of them all in Oklo ( NASDAQ:OKLO). In case it's been a while since you last checked the stock out, the name has since suffered a near 50% haircut from its peak. Of course, valuation has been a concern, and it remains a concern, even after the pummelling. The stock could lose another 50% of its value and still be considered pricey, especially since it's not yet profitable."
A major AI correction could still pull down many AI-linked stocks despite recent cooling. Energy capacity is a critical bottleneck as AI data centers come online, and those facilities will likely remain operational and require reliable power even if AI spending slows. Nuclear energy offers potential growth aligned with data center demand, but risks depend on company fundamentals and entry price. Oklo has dropped about 50% from its peak, remains pre-revenue and unprofitable, and still faces valuation concerns; the stock could decline further and remains worth watching amid expected 2026 market turbulence.
Read at 24/7 Wall St.
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