Magnets & HTS Superconductors

UBS Wealth Management says artificial intelligence is moving beyond text generation into scientific research, opening investment opportunities across AI infrastructure, pharmaceuticals, nuclear fusion, industrial materials and utilities. The shift was highlighted by OpenAI's recent mathematical proof related to the Navier-Stokes equations, a centuries-old fluid dynamics problem and one of seven Millennium Prize Problems, which OpenAI tackled using 10,000 autonomous AI agents working in parallel for 88 hours before formalizing the proof with Lean, a system for machine-checked mathematical validation. In pharmaceuticals, multi-agent AI systems can simulate millions of protein variations in the cloud, and more than 170 AI-designed programs are already in development or clinical evaluation, including Phase III trials. In nuclear fusion, reinforcement-learning systems can predict plasma disruptions around 200 milliseconds before they occur and adjust magnetic coils thousands of times per second, while AI models in materials science can test millions of elemental combinations daily in search of properties for lighter, higher-density batteries, lower-heat computing hardware and potential room-temperature superconductors. The broader investment case centers on AI becoming a tool for automating scientific research rather than simply generating content, with companies exposed to AI infrastructure, pharmaceuticals, industrial materials and utilities positioned to benefit as these technologies move toward commercial applications.

Bruker announced on September 4 that its energy and supercon technologies unit, Bruker Energy & Supercon Technologies (BEST), has entered a supply collaboration with Luvata Materials & Solutions to scale up production of RRP superconductors for magnetic confinement fusion. The deal comes as fusion projects ramp up globally and follows a month after Bruker's core instruments business showed signs of stabilizing. BEST revenue rose 11.9% year over year to $74.2 million in the second quarter, with organic growth of 8.9%, while first-half revenue climbed 12.3% to $141 million, helping expand non-GAAP operating margin to 14.1% from 9% and lifting non-GAAP diluted EPS to $0.49 from $0.32. However, GAAP results swung to a $65.3 million operating loss due to a $134.9 million non-cash goodwill charge, and total company organic revenue growth was only 2.8% in the quarter. The Luvata agreement has no disclosed contract value or timeline, and BEST's revenue is less than 9% of total company revenue, leaving investors to weigh the fusion potential against a still-soft academic market.

Global private investments in nuclear fusion hit a record $4.48 billion in 2025, a 69% surge driven by AI data center energy demands and rising energy security concerns. The Fusion Industry Association reports that about 71% of fusion companies now expect to deliver commercial power to the grid by the 2030s, with firms inking site selections and power purchase agreements with major tech companies. Helion Energy signed a binding power purchase agreement with Microsoft for at least 50 megawatts by 2028, backed by a $465 million Series G round that valued the company at $15.5 billion, and broke ground on its Orion facility in Washington. Commonwealth Fusion Systems raised $863 million in an oversubscribed Series B2 round, bringing its total funding to nearly $3 billion, to develop its SPARC demonstration device and design the ARC commercial plant in Virginia. Proxima Fusion raised €411 million, becoming Europe's best-funded fusion company at a €2.4 billion valuation, with Google and RWE each contributing €25 million to accelerate its stellarator-based Alpha demonstrator near Munich.