New Alpha | AI boom's secret winners: OKLO/SMR/VNET
💰 U.S. market was shaken by Trump’s tariff, major indices taken down, while Chinese assets performed impressively.
💹 $Oklo Inc.(OKLO)$ , $NuScale Power(SMR)$ , and $VNET Group(VNET)$ benefited from AI infra investments, nuclear and AIDC showing strong performance and continuing to strengthen.
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| Market recap
Looking back at last week, US stock indices saw slight declines. $S&P 500(.SPX)$ dropped by 0.24%, and $NASDAQ(.IXIC)$ fell by 0.53%, but both saw a smaller decline compared to the previous week.
On Friday, Chinese assets performed notably well: $NASDAQ Golden Dragon China Index(HXC)$ rose by 1.34%, $Li Auto(LI)$ increased by over 4%, and $Alibaba(BABA)$ gained over 3%.
Megacaps
It seems Elon Musk might need to think about how to Make Tesla Great Again. Tesla’s sales of China-made electric vehicles fell 11.5% to 63,238 units in January compared to the previous year, according to data from the China Passenger Car Association released on Friday. To make matters worse, two key executives and Musk’s brother, Kimbal Musk, recently announced the sale of nearly 200,000 shares. After the sale announcement, $Tesla Motors(TSLA)$'s stock dropped by 7.5%, with a total weekly loss of 11%.
MAGA
BigBear, Now! On Friday, $BigBear.ai Holdings(BBAI)$ surged 27%, continuing the defense AI momentum led by $Palantir Technologies Inc.(PLTR)$ . On Wednesday, the company announced it had secured a major contract with the U.S. Department of Defense to help the government use AI language models to assess non-US allied country media sources more effectively. Though some have called it just another meme stock, BBAI is being discussed on Reddit as a "Palantir 2.0."
Top movers
Faovr KOL? I am not talkin' bout TikTok. Ackman backed $Uber(UBER)$, and the stock briefly jumped over 9%. World famous hedge fund manager Bill Ackman revealed that his Pershing Square had built a position in Uber since January, amounting to $2.3 billion. He believes Uber’s management is excellent, and its stock is still undervalued. Since the beginning of 2025, the company’s stock has rebounded by about 25%.
The earnings season is still heating up—don’t miss out. Driven by strong performance, several stocks saw significant gains:
- Digital health platform $Doximity, Inc.(DOCS)$ rose 35%, mainly due to strong financial results and an optimistic outlook.
- Fintech star $Affirm Holdings, Inc.(AFRM)$ rose over 21%, with Q4 results and guidance beating expectations.
- $Pinterest, Inc.(PINS)$ gained 19%, after reporting strong Q4 results and an upbeat forecast.
Today (Monday), Chinese assets continued to rise thanks to DeepSeek. $CHINA TELECOM(00728)$ (+6.6%), $CHINA UNICOM(00762)$ (+4.4%), and $CHINA MOBILE(00941)$ (+1.7%) all announced they fully integrate with DeepSeek. It’s worth noting that the three major telecom operators are also representatives of high dividend stocks in the China A-share market.
| Power, More Power
Trump stated that in order to scale artificial intelligence to the desired level, the US needs to double its current energy supply. On Friday, US nuclear energy stocks surged, with $NANO Nuclear Energy Inc(NNE)$ rising over 17% and $Oklo Inc.(OKLO)$ gaining over 13% on Friday.
SMR (small modular reactor), as an advanced nuclear reactor, has a power capacity about one-third of traditional nuclear reactors but is faster to build, cheaper, and requires much smaller emergency planning zones. It is highly compatible with data centers and aligns well with AI demands.
Tech giants like $Microsoft(MSFT)$ , $Alphabet(GOOG)$ , $Amazon.com(AMZN)$ , and $Meta Platforms, Inc.(META)$ are all betting on nuclear energy. Since Q4 of last year, SMR-related companies in the US stock market have seen a sustained boost in stock prices.
| Power up the plans
$Oklo Inc.(OKLO)$ and $NuScale Power(SMR)$ both focus on the future of nuclear energy technology, while $VNET Group(VNET)$ is focused on internet infrastructure and data center services. Looking at the benefits each has received, OKLO and SMR are supported by governments and multinational energy companies, while VNET mainly benefits from the demand from Chinese internet giants and the cloud computing industry.
OKLO
Sam Altman-backed $Oklo Inc.(OKLO)$ is a company focused on SMR technology, aiming to develop a safer, more efficient, and cost-effective nuclear energy solution. The company’s “compact” reactor design is primarily intended for remote areas or regions where the existing power grid cannot handle the load, providing reliable energy supply in such cases.
Compared to traditional nuclear power plants, OKLO’s reactors are smaller, use less fuel, have shorter construction times, and are easier to transport.
OKLO has strong backing from the US Department of Energy (DOE), including funding and policy support, as small modular reactors are considered an essential part of the future of clean energy.
SMR
$NuScale Power(SMR)$ is a US-based nuclear energy company focused on developing and promoting small, flexible, and safer nuclear power solutions. Their core product is the NuScale modular reactor technology, designed to simplify the scale and complexity of traditional large nuclear plants while improving safety and cost-effectiveness.
Both NuScale and Oklo are dedicated to developing small modular reactor technology, but they differ significantly in their technical approaches, design philosophies, and market positioning. NuScale focuses on improving traditional nuclear technologies and modular scalability, receiving support from governments and large corporations. They are ahead in terms of technological maturity and market acceptance. In contrast, Oklo is exploring innovative lead-cooled reactor technology, which holds great potential but faces challenges in market adoption and technological maturity.
NuScale’s success is largely attributed to robust government support, international partnerships, and a well-established R&D model.
VNET
$VNET Group(VNET)$ is one of China’s leading data center service providers, specializing in efficient, scalable cloud infrastructure solutions. Its main clients include various internet companies, corporate clients, and government agencies.
VNET is likely to benefit from the spillover effect of DeepSeek, thanks to its resource advantages. UBS pointed out that 2024 will mark a year of AI training volume surge in China, with about 80-90% of data center demand driven by AI training. As AI training and inference costs significantly decrease, more end-users, especially retail customers, are expected to use AI to enhance their businesses or develop new applications.
The demand for such data centers will be more location-specific, and therefore, data center operators like VNET, with abundant resources in first-tier and near-first-tier cities, will have stronger pricing power.
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- tiger_cc·02-10 19:13THX for sharing!LikeReport