Cameco is positioned to capitalize on rapidly rising electricity demand driven by artificial intelligence, which the International Energy Agency projects will double AI-related power consumption by 2030. Major technology players such as Microsoft and Alphabet have inked long-term agreements to bring nuclear reactors back online to power data centers, while the U.S. Department of Energy aims to triple America’s nuclear output by 2050. These commitments create a multi-decade demand profile for uranium that favors established producers like Cameco.

Cameco owns Cigar Lake and McArthur River, which together represent the world’s highest-grade uranium deposits. In 2024, the company produced 160 million pounds of uranium, accounting for 17% of global output and making it the world’s second-largest miner after Kazakhstan’s state operator. The exceptionally high ore grade reduces refining costs and positions Cameco’s product as a lower-cost feedstock for reactor operators.

After growing revenue at a 2.6% compound annual rate over the decade to 2023, Cameco has accelerated to a 24.2% CAGR over the past three years. In its most recent fiscal year, the company reported a gross profit margin of 36.3% and a net income margin of 15.2%, outperforming peers in the capital-intensive uranium sector. This margin strength has driven total shareholder return that has outpaced the S&P 500 by a factor of eight over the last 12 months.

Cameco holds a 49% equity interest in Westinghouse Electric Company, supplier of the advanced AP1000 reactor. The U.S. government’s $80 billion investment to build 10 AP1000 units over the next decade directly aligns with Cameco’s uranium supply, creating a secured off-take channel. This strategic partnership not only underwrites long-term contract volumes but also enhances Cameco’s exposure to the global renaissance in reactor construction.