Cathie Wood's Ark Just Bought $7.6 Million of Nuclear Supplier BWX Technologies While Continuing to Dump Roblox Stock. Is Nuclear Power Ark's Next Big AI-Adjacent Bet?

CEO Cathie Wood's Ark Invest firm is known for its focus on potentially revolutionary technologies. The firm manages multiple exchange-traded funds (ETFs) and publishes updates regularly when it makes trades. Wood's status as a high-profile growth investor and the easily trackable nature of the portfolio holdings of her company's ETFs mean that some investors pay close attention to trades made by Ark's investment teams.

News that Wood and her team have bought or sold a stock can even have a meaningful impact on a company's near-term valuation momentum and attract investor attention to plays surrounding longer-term trends. Ark's move to purchase roughly $7.6 million shares of BWX Technologies (NYSE: BWXT) across three of its funds on Aug. 20 generated new interest for the company as a nuclear power provider that could be poised to benefit from artificial intelligence tailwinds. Notably, Ark also sold roughly $6.5 million worth of Roblox stock the same day -- potentially reflecting a broader strategic reorientation by the firm.

Is Ark gearing up for bigger bets on AI-related power demand?

Running high-performance AI data centers is enormously energy-intensive, and the national build-out of data center infrastructure likely remains in its infancy. The current power grid isn't equipped to handle the surging demand for power that will accompany more and more data centers coming online, and that's caused analysts and AI industry players to look to nuclear power and other sources of energy as solutions.

BWX manufactures nuclear reactors and fuel sources for defense applications including submarines and aircraft carriers, and it also makes components for commercial nuclear power plants. Additionally, the company is now making microreactors that could power AI data centers.

BWX has a strong pedigree in the nuclear energy space, and the company's position as a nuclear components and fuel source supplier and manufacturer of microreactors gives it multiple ways to win as data center growth spurs rising energy demand. While it's impossible to forecast exactly what moves Wood and Ark will make, it wouldn't be surprising to see the firm pour more investment dollars into the company and other nuclear energy specialists capable of capitalizing on the trend.

BWX stock has the potential to be a strong pick-and-shovel play in the AI space. Picking individual hardware and software winners involves a lot of guesswork and attempts to predict twists and turns in a tech category that's still relatively young, but it seems highly likely that AI-related energy demand will continue surging regardless of which hardware and software companies wind up on top.

While it's still unclear whether BWX's microreactors will win big contracts from hyperscalers and other data center customers, the company has solid financial foundations thanks to its existing businesses -- and it appears to have strong competitive positioning compared to smaller, more specialized players in the microreactor space. With that in mind, it wouldn't be surprising to see the company score some big AI-driven wins and attract more investment dollars from Cathie Wood and other high-profile investors.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BWX Technologies and Roblox. The Motley Fool has a disclosure policy.