Remember when nuclear fusion was that thing that was “always 30 years away”? Well, plot twist: it might actually be here in the next decade. And before you roll your eyes, hear me out – this isn’t another pie-in-the-sky tech story.
In December 2022, scientists in California did something pretty wild. They fired 192 lasers at a tiny gold capsule and, for a brief moment, got more energy out than they put in. It’s like finally getting a positive return on your crypto investments, except this could actually power civilization.
Here’s why this matters now: AI is basically turbocharging fusion development. Think about it – fusion is essentially a multi-variable nightmare involving plasma that’s hotter than the sun and magnets that push physics to its limits. But AI loves crushing complex problems, and it’s doing exactly that with fusion.
The real kicker? Private companies are actually signing deals. Microsoft – yes, that Microsoft – has a power purchase agreement with Helion Energy to start getting fusion electricity by 2028. Even if they’re a bit optimistic on timing, the fact that a Fortune 500 company is betting real money on this tells you something’s changed.
So how do you invest in something that’s mostly private companies? You go for the “picks and shovels” play – the companies supplying the tools that make fusion possible.
The Smart Money Moves:
Cryogenics & Industrial Gases: Companies like Linde (LIN) and Chart Industries (GTLS) are already making the ultra-cold systems that fusion reactors need. They’re also levered to semiconductors and hydrogen, so you’re not betting everything on fusion working out.
High-Temperature Superconductors: Bruker (BRKR) makes the superconducting magnets that are basically fusion’s secret sauce. These aren’t just for fusion – they’re used in MRI machines and quantum computers too.
Laser & Photonics: Companies like Coherent (COHR) and IPG Photonics (IPGP) make the industrial lasers that could power inertial fusion. Plus, lasers are having a moment in manufacturing and defense.
Power Electronics: Advanced Energy (AEIS) and Monolithic Power (MPWR) make the power management systems that fusion reactors need. They’re also riding the AI data center boom, so double win.
The AI Connection: AMD (AMD) and NVIDIA (NVDA) are powering the supercomputers that are solving fusion’s hardest problems. The Department of Energy just committed $1 billion to AI supercomputers specifically for energy research.
Look, fusion might still be a few years out from lighting up your house. But the infrastructure build-out is happening now, and these companies are getting paid whether fusion works perfectly or just works eventually.
The best part? Most of these stocks have other growth drivers, so you’re not making a pure fusion bet. You’re investing in the tools that power the future – whether that’s fusion reactors, AI data centers, or whatever comes next.
Sometimes the biggest opportunities hide in plain sight. While everyone’s obsessing over the next AI stock, the companies building the energy infrastructure for our AI-powered future might be the real winners.