The coming power crunch that could supercharge AI stocks … a new innovation from Louis Navellier VIEW IN BROWSER
We’re a little over a month away from the busiest travel week in America.
According to the American Automobile Association, almost 80 million Americans will travel at least 50 miles during the upcoming Thanksgiving holiday.
Airlines for America, the trade association for the leading U.S. airlines, projects that more than 31 million passengers will fly on U.S. carriers over the same period – an all-time high.
Anyone who has traveled during Thanksgiving week knows what it’s like: standstill traffic, flight delays, and packed terminals.
Now picture this: The number of passengers triples – 240 million Americans travel that week, and 93 million by air – but the infrastructure stays the same.
Not one more mile of highway or one more runway. Not one more gas station or airplane terminal.
The system would buckle under the strain.
That’s the crunch we’re rushing into with AI, according to tech investing expert Luke Lango.
But there is a key difference with the AI megatrend.
The infrastructure demand isn’t tripling; it’s increasing by as much as 10 times! And right now, the infrastructure needed to meet that demand doesn’t exist.
That equals an enormous opportunity for investors that I will share today…
The Approaching AI GapOn Wednesday, Luke shared a chart from Morgan Stanley Research in his Hypergrowth Investing e-letter that shows the U.S. power needed (in blue) versus the potential shortfall (in red).
To Luke, the conclusion was simple.
In plain English: the AI Boom is about to slam into a wall of physics.
Morgan Stanley estimates that between 2025 and 2028, U.S. data centers will need an additional 57 gigawatts of power. That’s like adding the electricity consumption of dozens of major cities … in just three years.
But right now, there are only 6 GW currently under construction…
The grid can cough up maybe 15 GW in spare capacity … that leaves a 36 GW shortfall … a gaping red hole on the chart.
We’re calling it “The Crunch” — the moment when AI ambitions outstrip the energy supply needed to fuel them.
And it could spark the most promising AI investment opportunities of the next five years.
Everyone’s been obsessing over GPUs, semiconductors, and whether Nvidia can keep shipping trillions of transistors. But this chart tells us that the real bottleneck isn’t chips … it’s gigawatts.
No electricity, no AI. Period.
Luke says part of the answer to this crunch is small modular reactors (SMRs). Although less powerful than big nuclear power plants, they can be developed quickly. An SMR can be deployed in two to five years, versus the 10- to 15-year project of a nuclear power plant.
The market seems to agree with Luke.
In August, he recommended Oklo Inc. (OKLO) stock as the purest of the small reactor plays to his Innovation Investor subscribers. Since then, the stock is up almost 60%.
Here is how he described the opportunity:
The biggest bottleneck for AI expansion isn’t chips — it’s electricity. Data centers need round-the-clock, stable power that intermittent renewables can’t guarantee alone. Microreactors placed close to hyperscalers reduce transmission losses and boost resilience, while also helping companies hit carbon-reduction targets. If Oklo can scale production, its reactors could become a foundational enabler of future compute growth.
If we’re going to meet AI’s potential, we’ll need the extra power. That’s why CEOs like OpenAI’s Sam Altman are throwing their weight behind SMRs such as Oklo.
Altman was Oklo’s board chair until April, when he stepped down to avoid the appearance of a conflict of interest and to allow the company to pursue partnerships with companies like OpenAI.
Earlier this week, Oklo announced that it and Newcleo will co-establish advanced nuclear fuel production in the U.S., with up to $2 billion in committed investment. Securing a domestic supply of fuel is key to scaling SMR deployment.
Currently selling for around $135, OKLO stock is still below Luke’s $175 buy limit in Innovation Investor. |
