Why Cameco, Denison Mines, and Energy Fuels Stocks All Popped on Wednesday

Group 1: Market Trends and Demand - Uranium mining stocks have seen significant gains, with Cameco rising 8.2%, Denison Mines up 14.7%, and Energy Fuels increasing by 17% [1] - Investors are optimistic about a resurgence in nuclear energy demand, driven by tech giants like Microsoft, Alphabet, and Amazon making multibillion-dollar investments in the sector [2] - Microsoft initiated the rally by signing a power purchase agreement with Constellation Energy to reopen a nuclear power plant, highlighting the need for carbon-free energy for its Azure business [3] Group 2: Industry Developments - Alphabet is partnering with Kairos Power to develop small modular nuclear reactors (SMRs), which are expected to be cheaper and faster to build than traditional plants [5] - Amazon announced plans to collaborate with Energy Northwest and Dominion Energy to build multiple SMRs, potentially bringing over 1 gigawatt of nuclear power online [7] - The shift towards SMRs could accelerate demand for nuclear energy and uranium, as they may provide a quicker solution than larger gigawatt-scale plants [6] Group 3: Company Analysis - Denison Mines, with a market cap under $2 billion, is considered the cheapest among the three stocks, trading at 47 times trailing earnings and having no debt [9] - Cameco, valued at over$24 billion, is the most valuable in the sector but trades at a high valuation of 129 times trailing earnings, with expected profit growth over the next five years [10] - Energy Fuels, with a market cap of $1.3 billion, is seen as speculative but has cash reserves that may sustain it until it becomes profitable [11][12]