Fire investing seems to be all the rage now that Southern California has burned to the ground.
But what exactly is “fire investing?”
It’s basically what it sounds like. Investing in the stocks that will benefit in the aftermath of wildfires.
These could be homebuilders, such as KBHome (NYSE: KBH), PulteGroup (NYSE: PHM), and D.R. Horton (NYSE: DHI).
It could also include companies like Home Depot (NYSE: HD) and Lowes (NYSE: LOW), which always benefit in the aftermath of natural disasters.
Certainly construction and construction equipment companies will see an upswing in revenues. I’m talking about the likes of Caterpillar (NYSE: CAT), United Rentals (NYSE: URI), and Fluor (NYSE: FLR). And of course generator behemoth Generac (NYSE: GNRC) always sees a boost in valuation in times like these.
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There are also a number of startups now providing solutions that can mitigate the damages of wildfires. Something that probably makes far more sense than waiting for everything to burn to the ground, then shelling out billions to rebuild.
I’m talking about building materials that are fireproof and even new wildfire detection technologies. Consider this startup Pano, for instance. Pano has developed a connected, intelligent platform for fire professionals that helps them detect threats, confirm fires, and disseminate information to responders, faster than ever before.
The company speeds response time by empowering detection specialists with enhanced visual equipment and rapid data analysis supported by AI.
Specialists have a single, unified view combining ultra-high-definition cameras, geo satellite data, field sensors, legacy cameras, emergency alerts, and other data feeds. They also have the ability to share everything in real-time with their extended team. Altogether, this makes it possible to quickly identify and contain wildfires.
Fire Investing: Be Prepared!
Maybe because I was once a boyscout, but I truly believe it makes far more sense to be prepared than to wait until the damage is done, and then rebuild. And then, of course, wait for the next natural disaster to do the same thing.
Unfortunately, Pano is not a public company. But I do believe that we will start to see more of these types of “preparedness” companies go public in the coming years. Particularly as the world is forced to adapt to an increase in extreme weather events across the globe.
Of course, there are other ways to profit from preparedness. Ways that have nothing to do with natural disasters. Like AI for instance. An industry that is preparing for a massive increase in growth. Growth that can only be facilitated by securing more energy supplies.
If you’re a regular reader of these pages, you know that the rapid development of the AI industry is instigating a bull market in energy. In particular, energy companies that provide electricity solely to operate these AI data centers.
Last year, Amazon (NASDAQ: AMZN) announced a deal to build small modular reactors (SMRs) to power its data centers. Google (NASDAQ: GOOG) signed a contract with Kairos Power to develop a fleet of SMRs to power its data centers.
And just a few weeks ago, data center operator Switch inked a deal with Oklo (NYSE: OKLO) to deploy 12 GW of SMR projects.
Indeed, we will see more of these deals in 2025 as the world’s biggest tech giants race to secure enough power to meet demand for AI applications. And while these data centers can be powered with anything from natural gas to solar, the advantage of SMRs is their siting flexibility. These things can be built practically anywhere and without the need for a large, established infrastructure. As well, they’re far cheaper and faster to build than traditional power plants.
So clearly, we’re taking full advantage by loading up on shares of an SMR company that insiders are now calling the AI Master Key. This, because the AI Master Key is the link between escalating power needs from AI data centers and the cheap energy required to power them.
There’s no doubt in my mind that this is going to be a home run for us in 2025. Which is why our Energy & Capital research team put together this short report which explains exactly how the AI Master Key works. And of course, how you can start profiting from it right now.
To a new way of life and a new generation of wealth…
Jeff Siegel
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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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