Americore Resources (TSXV: AMCO)
Drilling Value in the Silver State
As artificial intelligence explodes into the mainstream, most market attention has fixated on chip giants like Nvidia. Yet lurking beneath the AI frenzy is a less glamorous but equally critical enabler: electricity. The voracious power demands of data centers are now igniting a different investment track—energy stocks.
Even with the S&P 500 hovering near all-time highs and looking historically expensive, picking selective energy plays might still offer a compelling long-term opportunity. Here are two undervalued “evergreen” names worth examining: GE Vernova (GEV) and Cameco (CCJ).
GE Vernova, the former energy arm of General Electric (GE), was spun off as an independent company in 2024. It operates through three main business segments: Power (providing gas turbines for combined-cycle plants, steam turbines for coal, gas, and nuclear facilities, along with nuclear services), Electrification (selling transformers, circuit breakers, substations, high-voltage direct current systems, and grid automation and optimization services), and Wind (focusing on onshore and offshore wind turbines).
Over the past year, both the Power and Electrification segments have delivered high double-digit order growth, together accounting for over 80% of total orders. The driving force? The rapid expansion of cloud computing, data centers, and AI markets. These facilities demand stable, robust power infrastructure—precisely where GE Vernova’s grid equipment and power generation technologies excel. While the Wind business has struggled with project delays and supply chain issues, its weakness has been comfortably offset by the strength of the core segments.
Analysts project that from 2025 to 2028, GE Vernova’s revenue and adjusted EBITDA will grow at compound annual growth rates (CAGRs) of 15% and 54%, respectively. As the company streamlines its wind operations, Power and Electrification stand to benefit from ongoing global electrification trends. With an enterprise value of approximately $206.5 billion, the stock trades at about 36 times this year’s expected adjusted EBITDA—a reasonable multiple given its growth trajectory. For investors seeking exposure to AI-driven power demand, GE Vernova offers a straightforward play.
If GE Vernova is a bet on grid modernization, Cameco represents a wager on nuclear energy’s resurgence. This Canadian company is the world’s second-largest uranium miner (behind Kazakhstan’s Kazatomprom), having mined 17% of the global uranium supply in 2024.
Following the 2011 Fukushima disaster, many countries put nuclear expansion on hold. Uranium prices collapsed from a peak of $136 per pound in 2007 to just $18 in 2016. Cameco was forced to shutter most of its mines, and revenues steadily declined. The turning point arrived in 2021—driven by AI, cloud computing, and data centers’ insatiable appetite for uninterrupted power, nuclear energy regained favor for its stability and low-carbon footprint. Between 2021 and 2024, Cameco’s revenue doubled from $1.5 billion to $3.1 billion, prompting the company to restart mines to meet recovering demand. Uranium now trades around $94 per pound and, barring another major disaster, appears poised to strengthen further.
Equally notable is Cameco’s strategic diversification. In 2021, it doubled its stake in the uranium enrichment joint venture Global Laser Enrichment (GLE) from 24% to 49%. In 2023, it acquired a 49% stake in Westinghouse Electric, a global leader in nuclear power plant design and construction. These moves are transforming Cameco from a pure mining company into a more integrated nuclear energy player.
Analysts forecast that between 2025 and 2028, Cameco’s revenue and adjusted EBITDA will grow at CAGRs of 7% and 14%, respectively. With an enterprise value of $66.4 billion, the stock trades at roughly 36 times this year’s projected adjusted EBITDA—a seemingly rich valuation. However, given the cyclical turnaround in uranium markets and long-term nuclear tailwinds, the premium may well be justified.
Whether it’s GE Vernova’s deep roots in traditional power and grid infrastructure, or Cameco’s expanding footprint across the uranium and nuclear value chain, both companies share a common growth thesis: the fundamental demand for “power” in the age of AI. Beyond the glittering chip stocks, these two energy plays may offer investors an alternative route to participate in the AI revolution.
