Cameco (CCJ 4.44%) is the largest pure-play nuclear company on the market and one of the best ways to play the resurgence of nuclear power in the energy mix. As recent events in the Persian Gulf have demonstrated, there’s a significant risk to global energy supplies, and that only adds to the already compelling case for nuclear energy as the answer to future energy needs.
The case for nuclear energy and Cameco
Cameco operates in three segments. The uranium segment mines uranium from three top-tier operations (two in Saskatchewan, Canada, and one in Kazakhstan), and uranium prices drive its profitability. The second segment, fuel services, is a uranium fuel supplier and also offers refining, conversion, and fuel manufacturing services. The third segment, Westinghouse, represented the 49% stake the company holds in Westinghouse Electric Company, a designer and manufacturer of nuclear fuel products and equipment for nuclear reactors, as well as the design of small modular reactors (SMRs).
Today’s Change
(-4.44%) $-5.00
Current Price
$107.51
Key Data Points
Market Cap
$47B
Day’s Range
$107.25 – $110.00
52wk Range
$50.03 – $135.24
Volume
3.1M
Avg Vol
3.3M
Gross Margin
27.44%
Dividend Yield
0.16%
Hyperscalers and AI infrastructure spending are driving uranium demand
The mix of businesses allows the company to profit from soaring uranium prices, driven by hyperscalers signing long-term power purchase agreements (PPAs) with nuclear energy companies to secure power for their massive AI data center investments. This growing demand has sent long-term uranium contract prices significantly higher. For example, Cameco’s average realized price for uranium in 2021 was $34.53 per pound compared to $66.21 per pound in the first three months of 2026.
Hyperscalers favor investing in nuclear fuel because it avoids the intermittency issues of renewable energy and supports their net-zero aims, as nuclear power generates carbon-free energy. In turn, Cameco’s fuel services benefit from the increased demand for reactor fuel, and Westinghouse is a key player in building out nuclear plants, including the fast-growing SMR.
A strategic necessity
The importance of securing a reliable carbon-free power supply has been underlined by events in the Persian Gulf, which have sent fossil fuel prices soaring. However, even before that, the U.S. government demonstrated the importance of nuclear energy by launching a strategic partnership with Cameco and Brookfield Asset Management (the other owner of Westinghouse), such that the government could invest $80 billion to construct Westinghouse nuclear reactors in return for potential cash distributions and warrants in connection with the right to require an initial public offering (IPO).
Image source: Getty Images.
Moreover, as Cameco’s Board Chair Catherine Gignac outlined on a recent earnings call, “Once new reactors enter operation, the maintenance, services and fuel supply they require throughout their 80- to 100-year life cycles create significant opportunities that are expected to benefit both Westinghouse and Cameco.”
A stock to buy
Ultimately, an investment in Cameco reflects the belief that nuclear power will play an increasingly important role in the energy mix. With governments and major corporations around the world signing into that view, the company appears ideally placed to benefit.
