Reuben Gregg Brewer, The Motley Fool

Sun, Jun 29, 2025, 6:00 AM5 min read

• Cameco is one of the largest uranium miners on the planet.

• The company largely operates in financially and politically stable regions.

• Nuclear power is seeing material interest thanks to growing electricity demand.

• 10 stocks we like better than Cameco ›

Cameco (NYSE: CCJ) has gone through some very trying times in the past, largely due to its reliance on the price of a commodity when it comes to revenue and earnings. But the uranium that Cameco mines could be in for a big step change in price. Here are three reasons to buy this nuclear power industry supplier like there's no tomorrow.

Cameco mines for uranium, which is the primary fuel for nuclear power plants. It is also a minority owner in Westinghouse, a service provider to the nuclear power industry. Basically, it is a way to invest in nuclear power without having to buy it directly. If demand for nuclear power grows, Cameco should benefit right along with that growth.

There is a risk here, however, because nuclear power has a history of large and very public disasters. Nuclear meltdowns, perhaps not shockingly, have led to a pullback in demand for nuclear power.

Right now, however, nuclear power is experiencing a bit of a renaissance. Notably, it doesn't produce greenhouse gasses, making it a clean energy source. And since nuclear power provides always-on (or base load) electricity, it can be paired with intermittent power sources like solar and wind to create a more reliable power grid.

All in all, Cameco's role in supporting nuclear power plants with fuel and services makes it a great way to play the nuclear power renaissance that is taking place today. And that's buttressed by the fact that its operations are largely in developed and politically stable markets, which customers appreciate just as much as investors should.

But the shift toward clean energy isn't the whole story. Demand for electricity is set to see a step change over the next 20 years or so. Between 2000 and 2020, U.S. electricity demand increased by a total of 9%. Between 2020 and 2040, demand is expected to grow by 55%. There are multiple drivers of that surge, notably including artificial intelligence (AI), data centers, and electric vehicles (EVs). Electricity use is expected to increase from 21% of final energy use to 32% by 2050.

Meanwhile, there are new nuclear plant designs and options coming to market that should make nuclear power more attractive. Safety is likely to improve, costs are likely to drop, and speed to market is likely to increase. All these factors will help to make nuclear a key part of the electric transition that is happening, which will likely mean more demand for uranium to fuel nuclear power plants.