Uranium stocks surge as US commits $80 billion to nuclear reactor buildout
ASX uranium stocks jumped 10% after the US committed over $80 billion to nuclear reactors, with Cameco soaring 23% to record highs.
Source: iStock
Mentioned
KEY POINTS
- Trump administration committed over $80 billion to purchase Westinghouse nuclear reactors, with the US potentially acquiring an 8% stake once profit conditions are met and an IPO possible if valuation exceeds $30 billion by 2029.
- Cameco rallied 23.4% to all-time highs given its 49% ownership stake in Westinghouse, while ASX uranium stocks rose an average of 10% with Boss Energy, Peninsula Energy and Alligator Energy leading gains.
- The deal adds to a series of bullish catalysts including Microsoft's Three Mile Island restart, Amazon's $500 million SMR investment, and Cameco's 19% production cut, though operational challenges at Paladin and Boss Energy highlight sector volatility.
Uranium stocks surged on Wednesday after the Trump administration announced a deal to build at least $80 billion of new nuclear reactors, part of a broader push to revive domestic nuclear development.
The deal mirrors recent government equity investments in Intel and US Steel, addressing financing challenges that have stalled projects despite growing enthusiasm for nuclear power fueled by AI-driven electricity demand.
The US will act as the initial buyer for multiple Westinghouse reactors, allowing project development to begin, including long-lead component orders. The investment structure could eventually give the US an approximately 8% stake in Westinghouse once certain profit conditions are met, with a potential IPO on the horizon.
Cameco hits all-time highs
Shares in the world's second largest uranium producer, Canada's Cameco, rallied 23.4% to fresh all-time highs. As some tend to forget, Cameco owns a 49% stake in Westinghouse, with Brookfield Asset Management and Brookfield Renewable Partners holding the remaining 51%.
The US-Westinghouse deal includes a profit-share for taxpayers once returns exceed $17.5 billion and could trigger an IPO if the valuation exceeds $30 billion by 2029.
The announcement lifted US-listed uranium stocks broadly, with Denison Mines, Uranium Energy Corp, Ur-Energy, and Uranium Royalty Corp up 5-20% overnight.
ASX-listed uranium stocks soar
Local uranium stocks rose an average of 10% on Wednesday. Notably, the best performers today (Boss, Peninsula, and Alligator Energy) are all down sharply year-to-date.
Ticker | Company | % Chg | Price | YTD |
|---|---|---|---|---|
BOE | Boss Energy | 18.55% | $1.89 | -22.43% |
PEN | Peninsula Energy | 13.39% | $0.64 | -45.24% |
AGE | Alligator Energy | 13.04% | $0.03 | -21.21% |
PDN | Paladin Energy | 12.44% | $9.04 | 19.10% |
BMN | Bannerman Energy | 11.97% | $3.46 | 22.26% |
TOE | Toro Energy | 10.59% | $0.47 | 108.89% |
NXG | Nexgen Energy | 9.96% | $14.19 | 31.34% |
LOT | Lotus Resources | 9.71% | $0.19 | -4.00% |
DYL | Deep Yellow | 9.55% | $1.72 | 54.26% |
DEV | Devex Resources | 9.09% | $0.12 | 25.00% |
AEE | Aura Energy | 5.13% | $0.21 | 64.00% |
T92 | Terra Critical Minerals | 4.84% | $0.07 | 62.50% |
EL8 | Elevate Uranium | 4.72% | $0.38 | 42.26% |
ASX-listed uranium stocks daily and year-to-date performance as at 11:00 am AEDT, Wednesday 29 October 2025
Where to from here?
This marks another bullish development for the uranium sector, joining a series of significant catalysts over the past 12-24 months:
20 September 2024: Microsoft signed a 20-year power purchase agreement with Constellation Energy to reopen the former Three Mile Island Unit 1 nuclear reactor in Pennsylvania
16 October 2024: Amazon (via AWS) announced three SMR-related agreements, investing over $500 million in X-Energy Reactor Company
23 May 2025: Trump signed executive orders to bolster the US nuclear energy sector under the Defense Production Act
28 August 2025: Cameco cut its 2025 production guidance from 18 million lbs to 14-15 million lbs, a 19% reduction
All the above catalyst drove substantial one-day gains for uranium stocks.
Uranium presents a rather asymmetric opportunity given surging energy requirements for data centers and the need for reliable, lower-carbon energy sources. Yet despite the bullish supply-demand backdrop, uranium equities have proven extremely volatile, serving as a stark reminder that mining is hard. The two largest ASX-listed producers, Paladin Energy and Boss Energy, have both faced substantial operational challenges in 2024-25.
The bottom line: it's hard not to be bullish, and the latest US-Westinghouse deal reinforces that sentiment. But do your due diligence to find the strongest opportunity. It might even come in the form of physical uranium.
