XE is down over 35% in a month and 70% from its IPO on cash burn and reactors not due until the early 2030s; but Amazon's backing and a roughly 11.5 GW SMR pipeline make the fall a speculative buy. He may take a small position, though he has not bought yet, already owning energy names.

X-Energy, a pioneer in small modular reactors, with the trading symbol XE. Cathy just bought over 700,000 additional shares this month, worth about $7.5 million.

Now, looking at the stock chart, we see that (XE) has fallen by more than 35% in the last month alone, continuing the stock's dismal performance since its high-profile initial public offering in April.

The stock has since lost more than 70% of its total value. So why are investors getting rid of the stock with such aggression? Well, it really comes down to the company’s current timeline and the massive cash burn that continues to hamper it all the way . Sorry.

Also, while the long-term vision for nuclear powering AI data centers looks very promising for the future, the problem is that X- Energy will probably not get its first commercial reactors up and running until the early 2030s .

Until that happens, the market will continue to view them simply as a research, development, and engineering company that consumes a lot of cash.

Personally, I don't expect that to happen to X- Energy, but for the record, analysts expect their net loss this year alone to exceed $430 million , with negative free cash flow also approaching half a billion dollars.

So, in a market where investors are already nervous about high- risk technology, this kind of cash drain is driving short-term traders to flee. On the other hand, here's why Cathy Wood made a purchase in light of this decline or collapse.

Because if you look at the bigger picture a little , you'll find that the tech giants are facing an energy crisis looming on the horizon. AI data centers require a huge amount of continuous power around the clock, which wind and solar power cannot provide continuously throughout the day.

Therefore, major cloud computing service providers realize that advanced nuclear power will truly be the only carbon-free solution capable of scaling up to meet their needs.

Instead of spending about 15 years building giant power plants , X- Energy chose to design its own modular small reactors that use its own fuel, which, unlike conventional reactors that use water- cooled uranium rods , uses helium-cooled pellets coated with ceramic layers that cannot melt, helping to completely prevent nuclear meltdowns, which will be very important for boosting nuclear power.

Right now, at this moment, they are building their own fuel facility, "TH-1," in Tennessee, which completed vertical construction in the last quarter and is on track to begin manufacturing commercial fuels by 2028. That's a good sign.

They already have huge support. For example, Amazon not only has a large stake , but has partnered with X-Energy to provide more than 5 gigawatts of small modular reactor (SMR) power by 2039.

Dow Chemical is implementing a four-reactor plant at its Texas facility, with building permits expected in early 2027, and Centrica is also collaborating with X-Energy to provide up to 6 gigawatts in the UK, giving X-Energy a future plan for around 11.5 gigawatts across 144 reactors.

Well, I think the point I want to make is that there is clearly a huge demand here for X-Energy. Once again, having the backing of the world’s largest data center operator , Amazon, is a very strong reason and justification for optimism about the future of X-Energy, isn’t it?

In fact, analysts on average believe the stock price will more than double from its current lows. So, do I support Cathy buying when the price is low, and am I buying shares myself?

Well, for Cathy's portfolio, which focuses on innovation and high risk, I think it makes perfect sense . This is exactly the type of company and technology you would expect someone like her to invest in.

And frankly, I must say, the lower the stock price, the more my intuition tells me that I should definitely grab a small, speculative portion of it for my own portfolio as well.

To be honest with you guys, the more it continues to decline, the more important it becomes on my watchlist , and the more I think about it. But the only reason I have n't bought it yet is simply that I already own several different stocks in the energy sector , some of which are very safe names like NextEra and Duke Energy, and others that are more speculative, like the company we will discuss next.