Nuclear’s Long-Term Signal: Uranium Contracting Picking Up

Utilities are fundamentally altering their approach to nuclear power, indicating a long-term commitment to this carbon-free energy source. At the Goldman Sachs Energy, Cleantech & Utilities Conference, Cameco (CCJ) highlighted that uranium prices have hit a 17-year high of $86 per pound. However, this figure understates the actual market demand. Roughly 70% of current contracts are market-related, reflecting prices around $100 and $115 per pound.

Utilities are prioritizing security of supply over spot exposure, accepting higher incentive prices and longer durations.

Sovereign Demand and the Need for Uranium Stocks

This shift comes in the context of drawn down government and utility inventories over recent years. Cameco also noted strong sovereign demand in uranium markets, with India providing one example. According to management, sovereign demand tends to be a strong leading indicator for a robust contracting environment.

The massive electricity requirements of generative AI and data centers further bolster demand. To meet these needs and to stay on track with the executive order of 10 under construction by 2030, long-lead items for gigawatt scale reactors must be ordered in 2026. 

The U.S. government is already stimulating this supply chain by partnering with Brookfield and Cameco to support the deployment of the Westinghouse AP1000 reactors. As announced in October, the partnership is targeting at least $80 billion of new AP1000 reactors across the U.S. Cameco owns 49% of Westinghouse, while Brookfield owns 51%.

For financial advisors, this structural shift is captured by the Range Nuclear Renaissance ETF (NUKZ). NUKZ tracks the VettaFi Nuclear Renaissance Index, providing exposure to Cameco and other companies involved in the nuclear renaissance. 

Stay Informed on the Nuclear Renaissance

For the latest updates on the nuclear space as well as a look ahead, watch the replay of, “Nuclear’s potential amid climate transition” from Thursday, January 22, 2026. Follow the link here to catch the replay.

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