X-Energy, Inc. (NASDAQ:XE) was among Jim Cramer’s stock calls on Mad Money recently as he recapped mega-cap tech earnings. Cramer mentioned the stock during the episode and stated:
X-Energy is still in its early stages, but they have three big initial customers already lined up: Amazon, Dow, and Centrica… But if we’re talking about backers, I need to mention that X-Energy has a very good relationship with the Department of Energy dating back to December, 2020… So how about the numbers? While the company’s still very unprofitable, there are some positives here…Let’s talk valuation, which is very difficult to do to the extent that it means anything for a money-losing company like this one.
As I mentioned earlier, X-Energy came public with a bang… At this price, X-Energy is being valued at around $12 billion. It’s hard to say whether that’s a good or bad price, given that we’re at least a year away from substantial revenues and maybe years away from profits. Understand this is obviously a very speculative position I’m talking about. You can only buy a stock like this with money that you can afford to lose. It’s high risk. But if X-Energy does pan out and become a major player in America’s nuclear energy renaissance, then it is going to be a high-reward stock. It’s the kind of stock I recommend in How to Make Money in Any Market because you know I’m pro-smart speculation. I think everyone should own one speculative stock. Maybe this is for you…
So here’s the bottom line: If you feel compelled to speculate on something connected to nuclear power, then I think X-Energy is the way to go. Just remember that it’s still insanely speculative. And if certain things happen, say interest rates spike or AI data center construction boom slows down, or there’s some sort of kind of like a regulation setback about nukes, then this stock will be crushed. But barring those terrible outcomes, I like X-Energy as long as you’re comfortable with the risk. Again, though, buy it with the money that you’re prepared to lose. But by all means, buy it if you’re really hung up on nuclear power.
Photo by Adam Nowakowski on Unsplash
X-Energy, Inc. (NASDAQ:XE) designs and develops nuclear reactor technology, including the Xe-100 reactor capable of generating both electric power and thermal output. In addition, it manufactures nuclear fuels.
While we acknowledge the risk and potential of XE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center