Could Cameco Be the Next Big Thing as Nuclear Energy Surges in 2025?

Cameco (NYSE: CCJ), the world’s second-largest uranium producer, has captured significant investor attention, with its stock surging 55% so far this year. But is this rally just the beginning of a much larger growth story, or merely a short-term spike?

From Struggling Miner to Diversified Nuclear Player

For over a decade, Cameco was a troubled investment. Between 2011 and 2021, the Canadian company’s revenue halved from $2.4 billion to $1.2 billion, weighed down by the Fukushima nuclear disaster, pandemic-related mine shutdowns, and currency headwinds. The uranium market itself had collapsed—spot prices dropped from $62.25 in 2011 to just $35.00 by 2020.

Today’s story is dramatically different. Cameco’s revenue nearly doubled to $2.3 billion by 2024, and uranium spot prices jumped to $72.63, driven by renewed interest in nuclear energy as a low-carbon power source and explosive demand from cloud computing and artificial intelligence infrastructure.

More importantly, Cameco itself has evolved beyond a pure mining play. In 2021, it raised its stake in Global Laser Enrichment (GLE), a uranium enrichment venture with Silex, from 24% to 49%. This move positioned Cameco as a more comprehensive nuclear fuel supplier. Then in 2023, through a partnership with Brookfield Asset Management (NYSE: BAM), the company acquired a 49% stake in Westinghouse Electric, a major nuclear power plant designer and builder. These strategic moves are transforming Cameco into a diversified nuclear energy ecosystem player rather than just a commodity miner.

The Long-Term Tailwinds Are Real

The transformation matters because nuclear energy is experiencing a genuine structural renaissance. The International Atomic Energy Agency projects that global nuclear capacity could increase by up to 2.5 times between now and 2050 as countries worldwide accelerate their nuclear expansion initiatives.

The drivers are compelling: governments seeking reliable, carbon-free electricity; tech giants building data centers for AI; and concerns over energy security in uranium-rich regions. Supply constraints reinforce this dynamic—production cuts at Cameco’s mines, Kazatomprom (the world’s largest uranium producer), and other major suppliers are tightening the market and supporting higher uranium prices.

What’s Driving Growth in the Near Term?

For 2025, Cameco projects its uranium revenue will grow 8%, delivering between 31 and 34 million pounds at an average realized price of about $87 per pound—notably higher than the current spot price of roughly $80. That pricing power reflects an increasingly tight market.

Looking ahead to 2027, Wall Street analysts anticipate compound annual growth rates of 8% in revenue and a striking 90% in earnings per share. That explosive earnings growth stems from multiple sources: expanding demand from cloud and AI infrastructure buildouts, GLE’s laser enrichment capacity coming online, the strategic Westinghouse stake providing earnings diversification, and advanced reactor technologies like small modular reactors opening new geographic markets.

Is Cameco Reasonably Valued?

At 52 times next year’s earnings, Cameco stock isn’t trading on the cheap. Yet the valuation reflects genuine growth potential. The company remains in the early stages of its current expansion cycle, and newer nuclear technologies could unlock incremental demand.

One caveat: Cameco is cyclical and sensitive to major disruptions—another nuclear accident or global pandemic could derail momentum. But for long-term investors willing to tolerate volatility, the next big thing in energy markets could be nuclear power, and Cameco may be positioned to be the next big thing as well. The stock has already demonstrated it can deliver spectacular returns, and the structural forces supporting nuclear energy growth suggest more upside may lie ahead.