Surging interest in nuclear power as a reliable and low-carbon source of electricity is creating a powerful demand tailwind for uranium miners. According to the International Energy Agency, artificial intelligence-related power consumption is set to double by 2030, and major tech firms including Microsoft and Alphabet have signed deals to revive U.S. nuclear plants to meet data-center needs. The U.S. Department of Energy has announced plans to triple America’s nuclear output by 2050, with ten new AP1000 reactors—and an $80 billion government investment—under development to support that goal.

Cameco is the world’s second-largest uranium producer, supplying 17 percent of global uranium in 2024 (approximately 160 million pounds). Its ownership of Cigar Lake—the world’s highest-grade uranium mine—and McArthur River—the largest high-grade operation—gives it a significant cost advantage, as these ores require substantially less processing than lower-grade deposits elsewhere. Cameco also holds a 49 percent stake in Westinghouse Electric Company, the AP1000 reactor manufacturer, positioning its uranium sales to fuel the very reactors it helps deploy.

Cameco has seen its revenue growth accelerate from a 10-year compound annual growth rate (CAGR) of 2.6 percent to a 24.2 percent CAGR over the past three years. The company reported a 36.3 percent gross profit margin and a 15.2 percent net income margin in its most recent fiscal year, impressive metrics for a capital-intensive mining business. Over the last 12 months, Cameco’s total shareholder return has outpaced the S&P 500 by a factor of eight, driven by tightening uranium supply and a wave of long-term utility contracting that still leaves roughly two-thirds of projected demand through 2045 uncontracted.