Big Tech's Power Thirst

“AI continues to drive a structural demand shift in nuclear energy, positioning uranium as a critical fuel for long-term data center growth,” wrote Jacob White, ETF product manager at Sprott Asset Management in a Sprott Uranium Report.

Included in White’s report is the chart below that punctuates the growing number of deals made with nuclear companies to increase capacity. As their demands for power increase, companies like Meta and Amazon have been partnering with nuclear providers over the last few years. Meta, for example, consented to a 20-year power purchase agreement with Constellation Energy. A similar deal was struck between Amazon and Talen Energy. The latter will provide the online retail giant with 1,920 megawatts of carbon-free nuclear power until 2042.

Each new deal with an energy provider and a big tech name is generating excitement across the nuclear industry. As power demands increase, expect more deals to come not just from industry giants, but across the broader tech industry. In turn, this could garner interest among investors for opportunities in uranium.

For a full list of each fund’s holdings, please click on URNM and URNJ. Fund holdings are subject to change.

Those looking to attain exposure to the growth potency of uranium may want to look at miners. As demand for uranium increases, so do the support services that operate within the industry. These support services include mining, exploration, development, and production, which are focal points of the Sprott Uranium Miners ETF (URNM).

In addition to miners, URNM also adds a touch of physical uranium exposure. The fund’s holdings include physical uranium, uranium royalties, and firms that hold the physical metal, or that derive royalties from it.

URNM specifically tracks the North Shore Global Uranium Mining Index. That follows the performance of companies entrenched in the uranium mining industry. The fund adds market cap diversification, including holdings that include small-, mid-, and large-cap companies. Investors may benefit from the stability of large-caps, balanced exposure with midcaps, and a touch of potential growth with small-caps.

Investors looking for an added potential growth factor when it comes to uranium miners can look at the "Sprott Junior Uranium Miners ETF":https://sprottetfs.com/urnj-sprott-junior-uranium-miners-etf/ (URNJ).Small-cap companies can provide amplified gains when they heads toward the upside. When combined with the potential for increased uranium mining demand, the combination can be hard to beat.

URNJ allows for ingress into the world of small-cap uranium miners. Rather than having to create a portfolio with individual stocks, URNJ does all the guesswork. It’s all available in the convenience of URNJ.

The fund tracks the total return performance of the Nasdaq Sprott Junior Uranium Miners Index. That index tracks mid-, small-, and micro-cap companies in uranium’s mining business. Having that exposure to midcap companies can help to temper the additional volatility that can be inherent in small- and micro-cap companies.

For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.

An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.

Past performance is no guarantee of future results. One cannot invest directly in an index.

Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.

Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.

Exchange Traded Funds (ETFs): GBUG, SLVR, SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ

Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP