Are you ready to reload your portfolio with something other than another overpriced AI technology stock? If so, you are not alone. The possibility of artificial intelligence is real, but getting into its most obvious terms here feels… uncomfortable.
Fortunately, there are safe, inexpensive ways to connect to it. Nuclear power game Cameco (NYSE: CCJ) you are one of them.
Missed Nvidia in 2009? This Rare Signal Lights Up Again. In 2009, a “Double Down” signal lit up a little-known chip maker called Nvidia. For the first time in years, that “Believe It All” signal is shining on a company 1/100 the size of Nvidia. Continue »
What is Cameco?
Simply put, Saskatchewan-based Cameco is one of the world’s largest suppliers of uranium used to generate nuclear power. It sold 33 million pounds of goods last year, preparing for use after being removed from several mines. The company is also a minority owner of Westinghouse, which builds and operates nuclear power plants. Cameco did nearly $3.5 billion in business last year, up 11% year over year, turning $590 million of that revenue into net income.
Three reasons to buy Cameco stock
That’s a summary of the company’s latest results, though. Why should investors be willing to take a shot at their stocks here and now?
1. The nuclear power business is poised for long-term growth
For years, it seemed that the nuclear power industry would disappear, replaced by seemingly safe and renewable energy options like solar and wind. Those alternatives are still coming into their own. But due to the insatiable demand for power for intelligence data centers, the world is falling back in love with nuclear power.
An opinion from the International Atomic Energy Agency puts things into perspective. As of the beginning of this year, it expects the nuclear power of the planet to increase by 160 percent from the levels of 2024 to 2050, according to the forecast of the World Nuclear Association.
For more perspective, the World Nuclear Association reports that 75 reactors are currently under construction and another 120 are planned, compared to 440 currently in operation.
2. Cameco is the biggest supplier on this side of the planet
Cameco is not a big name in the business. However, in some ways, it is the largest accessible source of enriched uranium used by a large number of nuclear power plants. The single largest supplier is Russia’s Rosatom, which has access to a large source of raw uranium in the neighboring country of Kazakhstan. This supply is largely restricted by transportation and geopolitical barriers, however, leaving Cameco to serve as the main supplier of enriched uranium in this part of the world.
