Best Nuclear Stocks To Buy Today

TLDR

Table of Contents

CLSA initiates coverage of Cameco with an outperform rating and $102 price target, representing 32% upside potential
Cameco controls 25% of nuclear fuel fabrication market and has exposure to 50% of world’s reactors through Westinghouse stake
Major tech companies Microsoft and Meta signed 20-year power deals with Constellation Energy for nuclear power supply
NuScale Power has two small modular reactor designs approved by U.S. Nuclear Regulatory Commission
Cameco reported 46% jump in uranium segment pre-tax income and $126 million profit from Westinghouse stake in Q2

Cameco Corporation emerged as a top nuclear investment pick this week as analysts highlight the uranium giant’s integrated business model spanning from mining to reactor operations. The Canadian company gained attention from CLSA equity research, which initiated coverage with an outperform rating and set a $102 price target.

The Saskatoon-based company has climbed more than 50% this year as global nuclear power demand accelerates. CLSA analyst Max Hopkins called Cameco “the most comprehensive play for the nuclear rejuvenation theme” in his research note to clients.

Cameco operates uranium mines at Cigar Lake and McArthur River/Key Lake in Saskatchewan, plus the Inkai joint venture in Kazakhstan. The company produced over 34 million pounds of uranium in 2024, making it a leading global supplier of uranium concentrate.

The company’s reach extends beyond mining through its 49% ownership stake in Westinghouse Electric. This partnership gives Cameco exposure to half of the world’s nuclear reactors and 25% of the nuclear fuel fabrication market.

Growing Demand from Tech Sector

Technology companies are driving new demand for nuclear power as data centers require massive amounts of clean electricity. Microsoft signed a 20-year agreement with Constellation Energy to purchase all power from Three Mile Island Unit 1 when it restarts in 2028.

The deal covers 835 megawatts of power generation. Meta Platforms followed with a similar 20-year contract for 1.1 gigawatts from Constellation’s Clinton Clean Energy Center starting in June 2027.

Constellation Energy operates the nation’s largest nuclear power fleet and expects to grow adjusted operating earnings at more than 13% annually through 2030. The company also agreed to acquire Calpine for $16.4 billion, which would boost earnings per share by 20% next year.

Small Modular Reactors Enter Market

NuScale Power represents the next generation of nuclear technology with its small modular reactor designs. The company received U.S. Nuclear Regulatory Commission approval for two SMR versions, giving it a regulatory head start over competitors.

NuScale’s factory-built reactors aim to be cheaper, faster to construct, and safer than traditional nuclear plants. The smaller size allows for easier transport and placement closer to population centers or industrial facilities.

Romanian utility RoPower is evaluating six NuScale reactors for a combined power plant. A final decision is expected within the next year, which could serve as NuScale’s first commercial sale.

Financial Performance and Market Position

Cameco reported strong second-quarter results with a 46% jump in uranium segment pre-tax income driven by higher sales volumes and prices. The company earned $126 million pre-tax profit from its Westinghouse stake compared to a $47 million loss the previous year.

Westinghouse delivered its first fuel reloads to Czech Republic nuclear plants at Temelín and Dukovany during the quarter. These fuel assemblies replace used reactor fuel and represent recurring revenue opportunities.

The uranium miner has secured commitments to deliver an average of 28 million pounds of uranium annually through 2029 as of June 30. Goldman Sachs projects many countries plan to triple nuclear power capacity by 2050 as artificial intelligence and data centers increase electricity demand.

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