5 Words That Will Tank Nvidia Overnight

We’ve reached a special time that comes once every few months; an event for an entity that has the power to move the entire market with a single whispered word: Nvidia. 

The tension builds up between each and every earnings report that can cause the whole market to soar high into the clouds, or plunge in crimson depths of pain. 

But there’s a dirty little secret here that never escapes the lips of investors. It’s the true elephant in the room that nobody seems to ever want to bring up, because to do so would strike fear in the hearts of every Nvidia shareholder 

Well, that’s not entirely true… we bring it up ever so often here on these pages. 

It’s an investment that’s so vital to the success of Nvidia that just five little words would cause the entire market to tank overnight: 

We don’t have enough power.

Last week, I told you that energy has always been the lifeblood of our economy. Truth is, our power generation is the single most important investment we can make to keep powerhouse tech empires like Nvidia running. 

And that, dear reader, is where we run into a bit of trouble. 

You see, our electricity demand has been rather stable for more than a decade. The problem is that some of the biggest tech trends in the market today are driving that thirst for power higher. 

We’re talking about more than simply the aggressive push toward electric vehicles — which in-and-of-itself is a heavy driver for electricity demand. The entire AI boom hinges on our ability to feed those companies the necessary power, especially when it comes to building out the amount of data centers needed.

Perhaps you remember when we talked about an IEA report published this year that projected global electricity demand for data centers could reach more than 1,000 Twh in 2026!

According to analysts at Rystad Energy, the demand growth from EVs and data centers alone will be more than other countries:

Oh, but this problem goes far deeper than simply telling energy companies to turn up the power.

I know the veteran members of our investment community have a good grasp on where our electrical generation comes from. 

Over the past decade, our electrical power mix has shifted. Cheap, abundant production of natural gas, along with an aggressive push for renewables such as wind and solar, have effectively killed off our coal industry. We’re no longer building coal plants, and the aging fleet we have now will soon be a thing of the past. 

Go ahead and take a look at where electricity came from in 2023:

So where’s the problem? Why don’t we just go all-in on clean sources like wind and solar?

If only we could. 

Unfortunately, reality eventually sets in and people will realize that this simply isn’t a feasible option. 

Let’s take data centers, for instance. Using wind energy to power data centers would be incredibly more efficient than using solar power — you would need 50,000 solar panels to produce the same energy as a single wind turbine! 

Looking back at that image above, you’ll see the only other renewable options would be hydro, which limits those data centers to very specific locations, or geothermal plants, which are far too expensive right now to even consider. 

But wind comes with some major drawbacks, in particular its intermittent and unpredictable nature. 

That leaves us with only a few options, one of which involves the production and burning of natural gas, which I’m sure would go over well with the environmentalists. 

However, if we’re talking about meeting the sheer scale of growth needed in the coming decades, you’ll soon realize that nuclear power is the best path forward. 

Although traditional nuclear power stocks like Constellation Energy (NASDAQ: CEG) or Duke Energy (NYSE: D) have been outperforming lately, you’ll find that Big Tech is also pumping billions of dollars into next-gen nuclear reactors. 

Those small players developing next-gen nuclear technology will garner much more of the spotlight as the rest of the investment herd catches on to Big Tech’s plans. 

Thing is, they still need to figure out that unlocking that energy will require a master key of sorts. 

But don’t take my word for it, this is something you should check out for yourself right away.

Until next time,

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.