Industry Overview - The AI-powered data center industry is experiencing significant growth, leading to increased demand for nuclear energy, which has become a hot sector on Wall Street over the past year [1] - The U.S. Department of Energy projects that data center energy usage will "double or triple by 2028," following a doubling over the past decade [2] - Executive orders signed by President Trump aim to increase U.S. nuclear energy capacity from 100 GW to 400 GW by 2050, focusing on reactors near military installations and AI data center hubs [3] Company Highlights Constellation Energy Corp. (CEG) - CEG is a leading energy company with a focus on clean and nuclear energy, planning a $5.1 billion capital expenditure through 2025 to acquire nuclear fuel and increase inventory [7] - The company has acquired a 2,645 MW nuclear plant, enhancing its operational capacity in Texas [8] - CEG has entered into a 20-year agreement with Microsoft to revive the Three Mile Island nuclear plant, aiming to provide carbon-free electricity for data centers [9][10] - Expected revenue and earnings growth rates for CEG are -0.3% and 8.8%, respectively, for the current year [12] Vistra Corp. (VST) - VST operates as an integrated electricity and power generation company with a diversified clean energy portfolio, including nuclear assets [13] - The company is positioned to benefit from government contracts and public-private partnerships related to AI infrastructure and grid reliability [15] - Expected revenue and earnings growth rates for VST are 34% and -15.4%, respectively, for the current year [16] Mirion Technologies Inc. (MIR) - MIR provides radiation detection and monitoring products, essential for operational nuclear facilities and next-gen reactors [17][18] - The company is focused on expanding its reach in the nuclear energy sector by collaborating with small modular reactor developers [19] - Expected revenue and earnings growth rates for MIR are 5.3% and 14.6%, respectively, for the current year [20] BWX Technologies Inc. (BWXT) - BWXT manufactures nuclear components and operates in both government and commercial sectors [21] - The company is expanding its commercial power segment and is involved in developing micro-nuclear reactors [22] - Expected revenue and earnings growth rates for BWXT are 12.9% and 6.6%, respectively, for the current year [23] Cameco Corp. (CCJ) - CCJ is one of the largest uranium producers globally, supplying uranium for clean electricity generation in nuclear plants [24] - The company operates through three segments: Uranium, Fuel Services, and Westinghouse, providing various services and components for nuclear reactors [25] - Expected revenue and earnings growth rates for CCJ are 7.5% and 91.8%, respectively, for the current year [26]

Group 1 - Cameco's shares increased by 2.8% as of 2:26 p.m. ET, with a peak increase of 4.8% earlier in the day, coinciding with gains in the S&P 500 and Nasdaq Composite [1] - The rise in Cameco's stock is attributed to a significant 20-year energy purchase agreement between Meta Platforms and Constellation Energy, which has positively impacted nuclear stocks across the industry [1][2] - The deal signifies a growing interest from tech companies in nuclear energy as they seek reliable power sources for their energy-intensive data centers, particularly to support artificial intelligence operations [3] Group 2 - Cameco, as the largest uranium provider globally, stands to benefit from the increasing demand for uranium driven by the energy needs of AI and the softening attitudes towards nuclear energy [5] - The ongoing AI arms race is expected to further escalate the demand for power, thereby increasing the demand for uranium in the future [5] - For investors seeking exposure to uranium stocks, Cameco represents a solid addition to a well-diversified portfolio due to its leading position in the market [5]

Nuclear stocks are riding a wave — again. But this time, it's not just hype and hope. President Donald Trump's new executive orders have fueled interest in uranium mining and small modular reactors (SMRs).Additionally, with AI-driven power demand soaring, investors are now asking if names such as Cameco Corp CCJ, Constellation Energy Corp CEG and Nuscale Power Corp SMR stay hot — or fizzle?Read Also: Trump Sparks Uranium Frenzy: Nuclear ETFs See Explosive Gains"The energy needs of AI data centers and nation ...

Company Overview - Cameco is a large Canadian miner that produces and processes uranium into fuel for nuclear power plants and owns a 49% stake in Westinghouse, providing services to nuclear power companies [2] - It is one of the largest publicly traded producers of uranium globally [2] Market Dynamics - Cameco's stock price is influenced by uranium prices, which fell in February 2024 but have since recovered to around $58 per share [1] - The company operates primarily in North America, a region considered economically and politically stable, which is a key selling point for its uranium [4] - The nuclear power industry experiences significant swings due to external factors, with past events like the Fukushima meltdown impacting uranium demand [5] Long-term Outlook - There is an expected growing supply gap for uranium starting in 2030 due to increasing global nuclear power usage, which could lead to higher uranium prices [9] - Cameco's strategy of signing long-term contracts helps stabilize earnings during periods of falling uranium prices, making it a less volatile investment option [8][10] Investment Considerations - The long-term outlook for uranium demand suggests strong financial performance for Cameco as demand is projected to exceed supply [10] - The company is viewed as a "pick-and-shovel" play on the growth of nuclear power, appealing to conservative investors [10] - However, past nuclear power renaissances have not lasted, and potential future nuclear incidents could negatively impact the industry's perception [11][12]

Core Insights - The article highlights the impressive stock market performance of Canadian uranium miner Cameco Corporation, noting a 25% year-to-date gain as of October last year, which outperformed many peers in the sector [2]. Company Summary - Cameco Corporation is identified as a significant player in the uranium mining industry, with its stock performance being a focal point of the analysis [2]. - The analysis is conducted by Manika Premsingh, who leads the investing group Green Growth Giants and has extensive experience in investment management and banking [2].

Industry Overview - President Trump signed an executive order to boost the nuclear energy industry, aiming to overhaul the Nuclear Regulatory Commission and expedite the development of new nuclear power reactors [1] - The executive order is expected to catalyze a resurgence in the nuclear sector, potentially leading to increased demand for nuclear energy [1] Company Insights: NuScale Power - NuScale Power's stock surged following the executive order, reaching all-time highs, although the company currently lacks a marketable product [4][6] - The company is developing small modular reactors (SMRs), which are cheaper and quicker to build compared to traditional nuclear plants, and can be transported closer to population centers [7] - A significant milestone for NuScale will occur in 2025 when RoPower decides on purchasing six SMRs, which could pave the way for future contracts [8] Company Insights: Constellation Energy - Constellation Energy is the leading nuclear power producer in the U.S., with a capacity of 22.1 gigawatts, significantly higher than its nearest competitor [10] - The company sells power under long-term fixed-rate agreements, allowing it to benefit from rising power rates [11] - Constellation is investing in clean energy, including a partnership with Microsoft to restart the Three Mile Island Unit 1 nuclear plant, and is exploring SMR opportunities [12][13] - The company anticipates over 13% compound annual growth in adjusted operating earnings through 2030, with potential for accelerated growth if it finalizes its acquisition of Calpine [14] Company Insights: Cameco - Cameco is positioned to benefit from increased uranium demand as the U.S. aims to quadruple its nuclear energy capacity by 2050 [15] - The company highlighted that nearly 70% of the uranium requirements for future nuclear reactors remain uncovered, indicating a need for approximately 3.2 billion pounds of uranium by 2045 [17] - As one of the largest uranium producers, Cameco is experiencing increased long-term contracting activity and holds a 49% stake in Westinghouse Electric, enhancing its competitive edge [18] - Cameco has a strong financial position, having paid dividends annually since 1991, with a 33% increase last year, making it a favorable investment in the nuclear sector [19]

Core Viewpoint - Nuclear stocks surged following President Trump's executive orders aimed at accelerating nuclear energy development, with a focus on reducing licensing approval times and allowing construction on federal land. The article argues that investors should remain optimistic about nuclear stocks through 2025 due to increasing demand and supportive government policies [1]. Group 1: Demand Drivers - The demand for electricity from AI data centers is increasing, putting pressure on traditional power sources. Nuclear power is positioned to alleviate this strain, with major tech companies like Google and Microsoft entering agreements to develop nuclear energy sources [2]. - The International Energy Agency forecasts record nuclear output by 2025, with tech firms expected to add 30 gigawatts of nuclear power to the grid over the next decade, presenting significant opportunities for energy investors [2]. Group 2: Regulatory and Policy Support - The global push for nuclear energy is gaining momentum, with numerous countries aiming to adopt clean, sustainable energy sources. The United Nations' COP28 conference set a goal to eliminate fossil fuels by 2050, which includes tripling nuclear energy output [3]. - Countries such as South Korea, China, and the U.K. are implementing individual policies to boost nuclear production, further enhancing the regulatory landscape for nuclear energy [3]. Group 3: Technological Advancements - The executive orders highlighted advancements in small modular reactors (SMRs), which are seen as a safer, more scalable alternative to traditional nuclear plants. SMRs can be deployed in remote areas and complement renewable energy sources, requiring less capital investment [4]. - NuScale Power, a leader in SMR technology, has seen significant stock price increases following the executive orders, indicating strong market interest in this technology [7]. Group 4: Key Nuclear Stocks - **NuScale Power**: The stock rose over 19% after the executive order announcement, benefiting from its status as the only approved SMR technology in the U.S. The company has a contract to provide two gigawatts of energy to data centers in Pennsylvania and Ohio, with a year-to-date stock increase of over 60% [7][9]. - **Cameco Corp**: As the largest uranium miner and refiner globally, Cameco's stock jumped more than 10% following the announcement. Analysts expect increasing nuclear demand to drive the stock higher, with a price target of $70.53, representing over 20% upside [11][12]. - **BWX Technologies**: This company supplies essential materials for nuclear facilities and reported $2.78 billion in annual sales. The stock has shown strong performance, with a recent earnings report indicating double-digit revenue growth [13][14].

Company Overview - Cameco Corporation is the largest Western producer of uranium, highlighting its significant position in the nuclear fuel market [2]. Industry Insights - The nuclear fuel cycle is experiencing a durable demand setup, which is favorable for incumbent producers like Cameco [4]. - Current uncertainties surrounding the supply side of uranium have reached unprecedented levels, creating a beneficial environment for established companies in the industry [4].

Summary of Cameco (CCJ) 2025 Conference Call Industry Overview - The conference focuses on the uranium industry, specifically the nuclear fuel cycle and Cameco's role as a leading producer [1][2] - There is a strong demand for nuclear power driven by climate security, energy security, and national security concerns [9][10][31] Key Points from Cameco's Presentation - **Durable Demand Setup**: The nuclear fuel cycle is experiencing a robust demand environment, while supply uncertainties are at an all-time high, benefiting incumbent producers like Cameco [4][31] - **Cameco's Unique Position**: Cameco is strategically positioned to capitalize on pricing needed to address the structural deficit in the nuclear fuel cycle [4][31] - **Electricity Grid Challenges**: The current electricity grid is not resilient enough to meet the growing demand for 24-hour baseload power, which nuclear energy can provide [6][8] - **Electrification Trends**: There is a shift towards electrifying various sectors, including mass transport and industrial heating, increasing the demand for reliable electricity sources [7][8] - **Nuclear Power's Role**: Nuclear energy is becoming essential for achieving energy security and is now viewed as a national security solution [10][11] Cameco's Assets and Capabilities - **Largest Uranium Producer**: Cameco operates the two largest uranium mines globally, MacArthur River and Cigar Lake, and has the largest exploration portfolio in the Athabasca Basin [13][14] - **Brownfield Leverage**: Cameco is strategically holding back production to avoid chasing lower demand, maintaining a unique position with already licensed and permitted assets [14][15] - **Comprehensive Fuel Services**: Cameco is involved in all aspects of the nuclear fuel cycle, including uranium mining, refining, conversion, and fuel fabrication, enhancing its value proposition [15][16] Market Dynamics - **Downstream Demand**: Utilities typically contract for fuel services before sourcing uranium, indicating that demand for uranium will eventually rise as downstream contracting increases [17][21] - **Record High Prices**: The enrichment and conversion markets are experiencing record high prices, indicating strong demand and a shift away from reliance on Russian fuel [22][23] - **Future Uranium Demand**: Utilities are projected to need 3.2 billion pounds of uranium over the next 20 years, which cannot be deferred indefinitely [26][27] Supply Challenges - **Supply Uncertainty**: There is a significant gap in known uranium supply, with 1.3 billion pounds unaccounted for, necessitating higher prices to stimulate production [29][30] - **Price Sensitivity**: The uranium market requires higher prices to convert resources into reserves and fill the supply gap [31] Strategic Outlook - **Patient and Disciplined Approach**: Cameco's strategy focuses on capturing demand before increasing production, supported by conservative financial management to outlast utilities in the market [31][32] - **Exciting Future**: The combination of durable demand and supply challenges presents a favorable outlook for Cameco and the uranium market as a whole [32]

Industry Overview - The Trump administration aims to accelerate the deployment of nuclear reactors in the U.S., reflecting a global shift in sentiment towards nuclear energy, especially after the Fukushima disaster in 2011 [1] - The International Atomic Energy Agency projects nuclear production capacity to increase 2.5 times by 2050, from 372 gigawatt-electric (GWe) in 2023 to 950 GWe by 2050, necessitating new reactors to achieve this growth [2] Company Analysis: Constellation Energy - Constellation Energy is the largest producer of carbon-free electricity in the U.S., focusing on nuclear power, which provides a stable electricity source unaffected by weather [4] - The demand for energy from data centers, particularly from tech companies like Microsoft, has enhanced Constellation's market position, with a power purchase agreement to supply nuclear energy for data centers [5] - Constellation's extensive nuclear plant operations and renewable energy focus position it favorably for future growth [6] Company Analysis: Cameco - Cameco is one of the largest uranium producers, operating mines in Canada and involved in the nuclear fuel cycle, which includes uranium conversion and enrichment [7] - The rising global demand for nuclear energy positions Cameco to benefit from increasing uranium prices and new reactor constructions, supported by long-term contracts with utility companies [8][9] - Cameco has significant uranium deposits in Saskatchewan and Australia, allowing for expansion as nuclear energy demand grows [9] Company Analysis: NuScale Power - NuScale Power specializes in small modular reactors (SMRs), which are designed for efficiency, safety, and scalability, making them suitable for decentralized power generation [10][11] - The company holds a first-mover advantage in the SMR market, with its 50 MWe SMR being the first approved by the U.S. Nuclear Regulatory Commission, and plans to upsize to 77 MWe [12] - NuScale is developing an SMR power station in Romania, targeting a launch date of 2029, making it a long-term investment opportunity for aggressive investors [13]