Cameco: US Government Pumps Billions into Nuclear Energy
The US is stepping up its expansion of nuclear energy. Through its Office of Energy Dominance Financing, the Department of Energy (DOE) has provided a conditional financing commitment of up to USD 17.5 billion to build a new nuclear supply chain. The funds are intended to finance key components for up to ten new AP1000-type large reactors. Up to five loans are planned, each supporting two reactors at a single site. Bundled orders are expected to reduce costs and rebuild manufacturing capacity in the US. Additionally, according to the DOE, the construction time for new reactors is expected to be shortened by up to three years. Together, the ten plants are expected to provide approximately 11 GW of secure baseload power. That would be enough to supply electricity to nearly 10 million US households or power approximately 11 gigawatts of AI data center capacity.
Cameco is likely to be one of the direct beneficiaries of the billion-dollar funding. The Canadian uranium producer holds a 49% stake in Westinghouse, while Brookfield owns the remaining 51%. Since the DOE funding is explicitly aimed at accelerating the construction of up to ten AP1000 reactors, Westinghouse, as the leading developer and technology partner for this reactor type, is likely to be a particular focus. Increased opportunities for contracts related to reactor design, engineering, components, services, and long-term maintenance could thus positively impact the value of Cameco’s stake in Westinghouse. In addition, every new nuclear power project strengthens long-term demand for uranium and nuclear fuel—Cameco’s core business. Cameco’s stock has risen by about 45% over the past year.
Uranium Expert Forecasts Significant Price Increases
According to market expert Justin Huhn of “Uranium Insider”, the uranium market is currently characterized by a significant discrepancy between the quiet spot market and a very active long-term futures market. While the spot market is currently stagnating and uranium companies’ stock prices have corrected following a period of overheating, the long-term market remains extremely robust. Around the world, energy utilities are returning to the negotiating table to secure long-term supply contracts. It is noteworthy that utilities are increasingly accepting the terms set by major producers such as Cameco or Kazatomprom. This is anything but a given, as uranium producers are demanding high price caps. This is actually unattractive to energy suppliers, but supply is so tight that they do not want to jeopardize their uranium supply.
Huhn expects a significant price increase for the future development of the uranium market. Demand is considered structurally inflexible and highly predictable due to the numerous reactors currently under construction. At the same time, supply is lagging, as production costs for mining operations have risen sharply due to inflation, higher fuel prices, taxes, and supply chain disruptions. Current market prices are nowhere near sufficient to finance the development of new mines, especially since development projects are lengthy, risky, and capital-intensive. Since significant long-term supply shortages loom and existing large-scale mines will be depleted in the next 10 to 15 years, the steadily rising futures price suggests the market is inevitably heading toward a significantly higher price level.
American Atomics: A Stock for the Uranium Rally
American Atomics shares are an interesting candidate to benefit from a uranium rally. While uranium producers like Cameco have already seen their shares rise, exploration companies are still lagging. The stock rebounded strongly at the end of 2025 and has been trading sideways ever since.
American Atomics is pursuing a vertically integrated uranium strategy in North America. This ranges from exploration and mining through processing to conversion and enrichment. The core project is Big Indian in Utah. According to management’s assessment, there are indications of a so-called “mirror deposit.” This could make Big Indian one of the largest undeveloped uranium deposits in the United States. Drilling is planned for this year.
In addition, the company completed the acquisition of the Blue Streak project in Colorado in April. The project comprises 194 claims in the Uravan Mineral Belt, a region in the US with a long history of uranium and vanadium mining. Among the region’s well-known historic sites is the Pickett Corral Mine, which produced approximately 51,495 metric tonnes of ore through 1971. This yielded about 293,985 pounds of U₃O₈ at an average grade of 0.29% uranium, as well as 1.98 million pounds of V₂O₅ at 1.92% vanadium.
An initial NI 43-101-compliant resource estimate confirms the potential of this historic uranium district. For the central project area, the new estimate shows 29,000 short tons in the “Measured” and “Indicated” categories, averaging 0.189% eU₃O₈. This corresponds to approximately 109,700 pounds of contained uranium oxide. In addition, 4,300 short tons of “Inferred” resources were reported at 0.177% eU₃O₈, or about 15,200 pounds of uranium oxide. American Atomics is preparing the permits for a potential resumption of mining.
https://youtu.be/hV9aODV4TbU?si=_PxhJH_dmcR7FH_R
Plug Power: When Will the Sell-Off End?
While uranium stocks appear to be making a comeback, the euphoria surrounding Plug Power is currently cooling off noticeably. In June, the stock lost about 35% of its value. Even the latest announcement has failed to stop the sell-off.
According to the announcement, Plug Power has completed the installation and commissioning of a 5-MW PEM electrolyzer at the Måde Power-to-X project in Esbjerg, Denmark. The plant was developed by European Energy and is also operated by the company.
At full capacity, the plant is expected to produce approximately 550 metric tonnes of green hydrogen annually. According to Plug Power, this would correspond to about 1,500 truckloads. The hydrogen produced is certified under the ISCC system as a Renewable Fuel of Non-Biological Origin (RFNBO). The containerized design reduced on-site work and accelerated commissioning.
For Plug Power, the project represents another reference site in the European electrolysis market. The company notes that it now has more than 70 GenEco electrolyzer systems in operation across six continents. The growing installed base is expected to help further standardize the delivery, commissioning, and technical performance of the systems.
Plug shares are currently trading at around USD 2.54. From Clear Street’s perspective, this presents upside potential. Following the Q1 results, analysts reaffirmed their “Buy” recommendation. The price target for Plug shares was raised from USD 3.50 to USD 4.00. The annual high stands at USD 4.58.
Uranium stocks are ripe for a comeback. The billions from the US government are another reason for rising prices. While Cameco is a core investment in the sector, American Atomics offers the chance for outperformance. Plug Power’s stock performance has long been driven by AI speculation. From a fundamental perspective, the stock appears overvalued. It needs large orders again.
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