Shares of Cameco (NYSE: CCJ), a leading North American uranium supplier, surged nearly 11% on Monday, significantly outperforming the S&P 500’s 0.5% gain and marking a record single-day increase for the company.
The rally was driven by two key factors. First, US Energy Secretary Chris Wright announced at the International Atomic Energy Agency (IAEA) conference in Vienna that the United States plans to expand its strategic uranium reserve. The move aims to boost confidence in the nuclear industry—a cornerstone of the administration’s energy policy—and reduce dependence on Russian supplies, which currently account for approximately 25% of US enriched uranium demand.
Wright emphasized that uranium consumption in the US is expected to grow rapidly with the expansion of large reactors and small modular reactors. He also stressed the need to develop domestic uranium production and enrichment capabilities.
Secondly, Cameco announced after market close on Friday that it had finalized a long-term uranium supply agreement with Slovenské elektrárne (SE), Slovakia’s primary power company. The contract, which will provide fuel for nuclear plants in the Central European country, extends through 2036. While financial details remain confidential, the deal has further bolstered market optimism.
Amid growing global energy demand, nuclear power is experiencing a strong revival. Tech giants such as Microsoft and Meta Platforms are increasingly turning to nuclear energy to secure stable power for data centers. The sector’s growth prospects have been enhanced by the US restart of nuclear initiatives under the Trump administration and broadening international support for nuclear energy.
As one of the world’s largest uranium producers, Cameco holds a dominant position across the nuclear supply chain. The company maintains majority stakes in two of the globe’s highest-grade uranium mines—McArthur River and Cigar Lake in Saskatchewan. It also owns a 40% share in the Inkai joint venture in Kazakhstan, with estimated share of reserves of 100.4 million pounds and a mine life extending to 2045. Additionally, Cameco holds a 49% interest in Westinghouse, a nuclear reactor technology OEM, through a strategic partnership with Brookfield Renewable Partners.
With its established presence in the uranium and nuclear value chain, Cameco is well-positioned to benefit from rising global demand for uranium and is expected to deliver robust earnings growth in the coming years.
