While professional investors seem well aware of investment themes such as artificial intelligence (AI), cybersecurity and cloud computing, they could be undervaluing nuclear energy, quantum computing and climate, research by WisdomTree suggests.
The ETF firm surveyed professional investors on the most compelling long-term investment themes and found artificial intelligence, cybersecurity and cloud computing topped responses, with global defence also ranking in the top five.
But Mobeen Tahir, director of macroeconomic research & tactical solutions at WisdomTree, thinks the real opportunities lie further down the list and said nuclear energy, quantum computing and climate themes may be getting underestimated relative to their potential.
Nuclear energy
Data centre power demand is rising sharply to meet the requirements of expanding AI use. Users expect immediate answers from AI tools, creating intense focus among hyperscalers on uninterrupted power supply in large quantities.
Nuclear energy can provide virtually zero-emission power that is scalable and always available. In the US, data centre energy consumption is expected to rise from around 183 TWh in 2025 to over 400 TWh by 2030 to meet growing demand.
Big tech companies are racing to secure nuclear capacity. Google partnered with Kairos Power to obtain several small modular reactors, which can be deployed locally to make data centres energy independent. Amazon signed multiple agreements to source energy from both traditional and small modular reactors.
Meanwhile, Meta recently signed a deal with Constellation to extend the life of the Clinton Clean Energy Centre in the US for an additional 20 years. Microsoft had previously taken a similar approach to securing nuclear energy for its operations.
Policy momentum behind nuclear power is building globally, such as when 31 countries agreed at COP29 to triple global nuclear capacity by 2050. The US went further this year, with president Donald Trump’s executive orders aiming to quadruple US nuclear capacity over the same period.
“With each passing day, more countries are embracing nuclear power for its strong environmental credentials and ability to deliver cheap, reliable electricity at scale, just as global energy needs continue to surge,” Tahir said.
According to WisdomTree's thematic universe analysis of all thematic funds and ETFs in Europe, nuclear energy was the top-performing theme year-to-date through the end of September.
Quantum computing
Multiple companies have announced plans to produce working quantum computers before the end of the decade. IBM's roadmap outlines a timeline for a fault-tolerant quantum computer by 2029, while IonQ has announced similar timelines.
The technology, which uses quantum mechanical properties to process information in fundamentally different ways from classical computers, may be approaching an inflexion point. Tahir noted: “This means that today, quantum computing could be where AI was in 2018, on the precipice and presenting a very compelling opportunity, at least in hindsight.”
Physicist and Nobel Laureate Richard Feynman stated that simulating nature requires quantum mechanical approaches. This ability to simulate and predict reality makes quantum computers transformative for certain applications.
For example, developing a new drug currently takes over a decade and can cost pharmaceutical companies more than $2bn, with success rates often below 2%. Quantum computers could model and predict interactions between chemicals and proteins to identify promising drug candidates, cutting costs, shortening timelines and improving success rates.
Climate themes
The climate category presents a more nuanced picture, as renewable and clean energy ranked fourth among the most compelling themes in WisdomTree's survey. Energy transition metals and materials, as well as battery solutions, were distinct categories that ranked in the middle of the list.
Tahir said: “We believe this is quite revealing for two reasons. First, perhaps investors are focusing on specific themes like renewable energy and metals rather than climate more broadly.
“And second, maybe the starting point for these themes is no longer climate change, but energy addition and the role of cutting-edge technologies in tackling the world’s rapidly rising energy needs.”
OpenAI’s Sam Altman has emphasised that the world will need more computing power and more energy as AI continues to evolve. The nuclear energy, quantum computing and climate themes are directly tied up with the rush to meet these demands, Tahir pointed out.
“The themes discussed above sit right on those fault lines and they have already started to move,” he finished. “But judging by our professional investor survey results, investor interest has not yet exploded, suggesting there may still be time for early adopters to benefit from the potential in these themes.”