The CEO of Rolls-Royce, Tufan Erginbilgic, recently stated that the company's plan is to use small modular reactors (SMRs) to power artificial intelligence (AI) data centers. If this strategy succeeds, it could potentially make Rolls-Royce the most valuable company in the UK.
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The development of artificial intelligence technology is booming, but the energy demands it brings have raised concerns about environmental protection and practical operations. Erginbilgic pointed out that Rolls-Royce has unparalleled capabilities in the nuclear energy field, especially in the market for small nuclear reactors. He believes that if Rolls-Royce cannot become a leader in the global market, it would be a mistake for the company.
Since taking over in January 2023, Rolls-Royce's stock price has increased tenfold, showing strong growth potential. He said that although many companies are seeking to go public in the US to get higher valuations, Rolls-Royce does not plan to follow this trend. He believes that Rolls-Royce can continue to succeed in the UK market.
Rolls-Royce is currently developing multiple small modular nuclear reactors for the Czech and British governments to meet the growing energy demand. This new type of nuclear reactor is not only small in size, but also has a short construction period and can reduce costs. Erginbilgic predicts that by 2050, the world will need about 400 small nuclear reactors, which will become a market worth over $1 trillion.
In addition to the nuclear energy business, Rolls-Royce's aircraft engine business remains the main source of revenue for the company. The company hopes to make breakthroughs in the narrow-body aircraft market. Although the competition in this market is fierce, Erginbilgic believes that this will bring great opportunities for the UK's economic growth.
After years of debt problems and declining profits, Rolls-Royce is gradually recovering and is expected to exceed £3 billion in profits in the coming years. Although Erginbilgic made layoffs at the beginning of his tenure, causing dissatisfaction among unions, the total number of employees has increased from 43,000 to 45,000, showing that the company is recovering.
Currently, Rolls-Royce ranks fifth in the UK stock market, and Erginbilgic is confident about the company's future. He believes that through the company's current businesses and new business developments, Rolls-Royce has the potential to become the most valuable company in the UK.
Key Points:
🌟 Rolls-Royce plans to use small modular reactors to power artificial intelligence data centers, aiming to become the most valuable company in the UK.
🚀 Since taking over in 2023, Rolls-Royce's stock price has increased tenfold, showing strong growth momentum.
✈️ Rolls-Royce hopes to make breakthroughs in the narrow-body aircraft market, bringing great opportunities for the UK's economic growth.