We came across a bullish thesis on ASP Isotopes Inc. (ASPI) on Rogue Funds’ Substack by Jacob Rowe. In this article, we will summarize the bulls’ thesis on ASPI. ASP Isotopes Inc.'s share was trading at $3.05 as of Oct 11^th. ASPI’s forward P/E was 54.35 according to Yahoo Finance.

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ASP Isotopes, Inc. (ASPI), founded in 2021 by Paul E. Mann and Robert Ainscow, is a pioneering isotopic enrichment company. Specializing in advanced isotope separation technologies, ASPI is positioned uniquely within the nuclear sector, particularly focusing on high-assay low-enriched uranium (HALEU) and radioisotope production for nuclear medicine and semiconductor applications.

ASPI’s revenue model is driven by its proprietary enrichment processes, including the Aerodynamic Separation Process (ASP) and Quantum Enrichment (QE). The ASP method utilizes a stationary wall centrifuge to achieve an unparalleled selectivity of 7-9, significantly exceeding competitors' capabilities. This positions ASPI to capture market share in the growing HALEU sector, with an estimated global demand of 3,000 metric tons by 2035. By producing HALEU at competitive costs and targeting gross margins above 70%, ASPI anticipates revenues reaching $600 million by 2028.

In nuclear medicine, ASPI's acquisition of 51% of PET Labs in 2023 allows for the production of isotopes like Carbon-14 and Molybdenum-100, targeting a $4.17 billion market. With Carbon-14 enrichment expected to generate at least $2.5 million annually, the company is also working towards FDA approval for Molybdenum-100, crucial for medical imaging applications. In the semiconductor industry, ASPI plans to enrich Silicon-28 for energy-efficient chips, with an operational facility set to launch in 2026. This expansion aligns with increasing demands for high-quality semiconductor materials.

ASP Isotopes presents an interesting opportunity for long-term growth as the company's innovative technologies and strong management team provide a solid foundation for capitalizing on the increasing global demand for enriched isotopes. The nuclear energy landscape is evolving, and ASPI is well-positioned to become a dominant player in HALEU production, especially as global suppliers face challenges.

ASP Isotopes Inc. is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held ASPI at the end of the second quarter which was 9 in the previous quarter. While we acknowledge the risk and potential of ASPI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ASPI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.