If I Could Only Buy 1 Nuclear Stock for the Next Decade, It Would Be This One

Detailed summary

Nuclear energy is gaining momentum worldwide, and this stock could be a standout way to invest in the industry.

Energy is the lifeblood of the economy, and demand is projected to accelerate. Artificial intelligence (AI) data centers require a vast amount of electricity. At the same time, the U.S. is taking steps to reshore manufacturing and electrify its power grid, and nuclear energy is being embraced as a baseload, carbon-free power source.

The U.S. has a massive fleet of 94 nuclear reactors. On top of that, the Nuclear Regulatory Commission is extending plant lifespans, utilities are adding more nuclear capacity through uprates and upgrades, and the U.S. aims to have 10 large-scale nuclear reactors under construction by 2030.

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As a result, nuclear energy should benefit from powerful, multi-decade tailwinds as countries worldwide triple their nuclear capacity, driving strong demand for uranium, nuclear fuel, and nuclear components and equipment.

If I could only buy one nuclear stock to hold for the next decade, Cameco (NYSE:CCJ) would be my choice. Here's why.

Cameco is well known for its massive uranium mining footprint. The company has investments in high-grade uranium mines in Saskatchewan, Canada, at both McArthur River and Cigar Lake, which have a combined licensed capacity of 43 million pounds per year. In addition, Cameco partners with Kazatomprom and owns 40% of JV Inkai, a low-cost in-situ recovery operation in Kazakhstan with a licensed capacity of 10 million pounds per year.

In addition to mining, Cameco owns the Key Lake mill, where it separates uranium minerals from rock and concentrates them into a transportable product called yellowcake. From there, Cameco converts the yellowcake into a gaseous or ceramic chemical compound, depending on the reactor technology at its Port Hope conversion facility.

Cameco sells its…

Came…

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