Why Shares of Cameco, Denison Mines, and Uranium Energy All Crashed Today

Group 1: Market Impact - The announcement of DeepSeek's AI development has led to a significant sell-off in uranium mining stocks, with Denison Mines down 9%, Uranium Energy down 10.1%, and Cameco down 13.2% [2] - Uranium prices were already in a downturn, having fallen 34% from a recent high of nearly $70 per pound to just under$70 [4] - The resumption of uranium production by Cameco's Inkai joint venture adds further supply to a market already facing declining prices [5][6] Group 2: Demand and Supply Dynamics - There are concerns that demand for nuclear power may not be as strong as previously anticipated, particularly in light of the new AI developments [5] - The long-term trend indicates a tug of war between uranium demand and increased production, which could keep prices in balance [9] - The break-even point for uranium mining is around $60 per pound, suggesting that current prices are still above this threshold, but profitability for companies like Denison and Uranium Energy has been declining [8][9] Group 3: Company Performance - Denison and Uranium Energy have reported losses for three consecutive quarters, while Cameco's profits have significantly decreased compared to the previous year [10] - Current valuations do not support a recommendation to buy these money-losing uranium stocks, including Cameco [10]