The nuclear power utilities have really heated up as some tech titans turned to small nuclear reactors to help fuel their AI data centers of the future. Indeed, Vistra (NYSE:VST) has enjoyed high triple-digit gains in the last 18 months on the back of this nuclear renaissance of sorts. Undoubtedly, only time will tell if the red-hot Vistra is overheated and overdue for a meltdown. Either way, the name looks too hot to handle for most.

In any case, there are more than a handful of ways to play a nuclear energy renaissance. In this piece, we’ll look at two cheaper uranium-mining plays to bet on the trend.

Key Points About This Article

• Cameco is a fantastic Canadian uranium miner that’s still a buy at close to all-time highs.
• The Sprott Uranium Miners ETF is also worth considering for those looking for a more diversified uranium play.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Cameco

As more utility firms triple down on nuclear energy, the demand for uranium is bound to move higher over time. Though uranium prices have retreated off their recent (2024) peak, top-tier Canadian uranium miner Cameco (NYSE:CCJ) is still close to an all-time high. Undoubtedly, the fully integrated uranium miner stands out as having a front-row seat to what National Bank Financial analyst Mohamed Sidibé calls an “energy revolution.”

Additionally, Sidibé is a fan of the company’s “disciplined approach” to managing its operations. Indeed, the company has been through some massive downturns for uranium and nuclear energy. Undoubtedly, the 2011 Fukushima nuclear disaster had turned many away from nuclear power for an incredibly long time.

With tech titans, like Amazon (NASDAQ:AMZN), recently looking to nuclear as a clean and sustainable way to power their data centers, it feels like the public perception of nuclear energy will continue to improve with time. This bodes well for top uranium miners like Cameco, which may find it necessary to get more aggressive to ramp up production, even as the spot price corrects a bit after its impressive multi-year ascent.

Over the past two years, the stock has more than doubled, surging 115%. If the pace of nuclear deals picks up going into the new year, perhaps the uranium market is undersupplied, making Cameco a vital part of the AI-driven nuclear boom.

At the time of writing, shares of CCJ go for 48.5 times forward price-to-earnings (P/E). Not cheap. But it doesn’t deserve to be cheap, given it’s a best-in-breed company with the most to gain from the rising appetite for uranium.

Sprott Uranium Miners ETF

For investors who want to bet on the broader basket of uranium miners, the Sprott Uranium Miners ETF (NYSEARCA:URNM) exchange-traded fund is an excellent option.

Sprott is a Canadian company specializing in precious metal and other commodity (think uranium) investment products, most notably ETFs. Indeed, the URNM ETF may very well be the best passive way to play a uranium bull market as AI data center-driven demand looks to overwhelm supply.

The ETF exposes investors to a wide range of international junior miners, many of which investors may never have heard of. Of course, Cameco — the gold standard in uranium mining, in my humble opinion — represents the largest holding in the ETF at just north of 16%.

Apart from miners, the ETF also holds a fairly sizeable stake in the physical commodity itself. The Sprott Physical Uranium Trust (TSX:U.U), a TSX Index (Canada’s major stock exchange) exclusive investment that invests in the physical commodity, has a weighting of around 11%. Indeed, the URNM really is a one-stop-shop for American investors who are bullish about the future of nuclear energy and uranium prices.

While I’m a fan of the ETF, the net total expense ratio, I believe, is a tad on the expensive side at 0.75%. Of course, there aren’t all too many uranium ETFs on the market right now. Though things could change in time, I do view the hefty expense ratio as worth paying up for if you’re keen on broadening your exposure to the uranium miners, many of which could hold significant upside if the nuclear renaissance is only just beginning.

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