Americore Resources (TSXV: AMCO)
Drilling Value in the Silver State
The artificial intelligence spending boom is colliding head-on with a widening uranium supply gap in the United States. Alphabet, Google’s parent, has raised its 2026 capital expenditure forecast to a range of $195 billion to $205 billion. Amazon lifted this year’s capex outlook to $220 billion, and Meta is issuing new debt to deepen its AI investments. The race for computing power is driving electricity demand higher, and nuclear energy is increasingly viewed as a critical source of stable power for data centers. Against this backdrop, some on Wall Street argue that Canadian uranium producer Cameco (CCJ) may be the most underappreciated beneficiary of the current energy anxiety.
Cameco is headquartered in Saskatchewan and, while not the world’s largest uranium producer, remains a key supplier to North America’s nuclear industry. In its last fiscal year, the company sold 33 million pounds of triuranium octoxide, the yellowcake fuel required by most nuclear reactors. Cameco also owns a 49% stake in Westinghouse Electric, whose technology is used in more than 90 nuclear reactors across 21 countries. For the most recent fiscal year, Cameco generated revenue of $3.5 billion and adjusted net earnings of $627 million, a clear improvement from 2024.
The U.S. uranium shortage reinforces this story. The American nuclear fleet is aging, with more plants being decommissioned than brought online, and 93% of the country’s uranium fuel comes from foreign sources. Parts of the critical supply chain are controlled by Russia. A Stanford Energy report warned that U.S. nuclear energy faces fuel supply vulnerabilities, with tight uranium supplies, geopolitical risks, and rising costs threatening both existing reactors and advanced reactor development. Washington is trying to rebuild a domestic nuclear fuel supply chain, but domestic uranium currently accounts for only 7% of reactor deliveries, leaving the country heavily dependent on imports in the near term.
Global competition for uranium is also intensifying. The World Nuclear Association expects global uranium demand to rise 28% by 2030 and nearly double by 2040. Russian and Chinese companies are actively competing for uranium resources in Central Asia and Africa, pushing prices higher. Over the next decade, U.S. nuclear plant operators are projected to require 360 million pounds of uranium, while existing long-term purchase contracts cover only 174 million pounds. The remaining 186 million pounds represents unfilled market demand that utilities must secure through new contracts. As a major North American supplier, Cameco’s bargaining power strengthens as that gap widens.
In the short term, AI data centers need immediate power, and gas turbines from companies like GE Vernova can meet that need more quickly. But natural gas generation is widely seen as a bridge solution. Over time, nuclear power has reached cost levels close to or below alternatives. The U.S. Nuclear Regulatory Commission has noted that some reactors originally licensed for 40 years could operate for as long as 80 years, meaning uranium demand may persist far longer than previously expected. The U.S. federal government has invested in spent fuel recycling, and a large in-situ recovery project in Texas has begun production, but domestic supply will take time to scale and cannot fill the near-term gap.
Cameco’s advantage lies in its dual exposure to both uranium mining and nuclear equipment. Its mining business benefits directly from rising fuel demand, while the Westinghouse stake allows the company to participate in reactor manufacturing, maintenance and servicing. When plants extend their operating lives or new projects are built, Cameco can sell more uranium fuel and capture equipment and service orders through Westinghouse. That combination is rare among uranium companies and makes Cameco more resilient than producers tied solely to uranium prices.
Cameco shares rallied last year amid the AI boom but have been largely flat this year. Most analysts still rate the stock a strong buy, with an average price target of $125.25, nearly 30% above the current level. With AI capital spending continuing to expand, the U.S. uranium supply gap widening, and global competition for resources heating up, Cameco’s combination of uranium assets and nuclear equipment exposure positions it to benefit from both fuel sales and reactor services. As more nuclear plants under construction eventually come online and consume enriched uranium, Cameco’s earnings potential may have further room to grow.
