The global demand for uranium is accelerating, driven by advancements in artificial intelligence (AI) and the electrification of industries. According to research from Goldman Sachs, data center energy consumption is expected to surge by 160% by 2030. Nuclear power, with its ability to deliver consistent and low-carbon electricity, is emerging as the preferred solution to meet these energy demands. Tech giants have publicly recognized the role of nuclear energy in supporting their operational energy needs.
In November 2024, the Biden administration unveiled a plan to triple U.S. nuclear energy capacity by 2050. This plan includes the deployment of 200 GW of new nuclear capacity through new reactor construction, plant restarts, and facility upgrades. In the short term, the administration aims to bring 35 GW of new capacity online by 2035.
Following the domestic nuclear energy deployment targets by the Biden administration, Russia announced restrictions on the export of enriched uranium to the United States. According to the Russian Government, these temporary restrictions are a response to the U.S. ban on Russian uranium imports, which was signed into law earlier in 2024. However, the U.S. ban includes waivers that allow shipments to continue until 2027 to address supply concerns. According to Reuters, Russia is a major player in the global uranium market and produces about 44% of the world’s uranium enrichment capacity. In 2023, 27% of the enriched uranium used by U.S. commercial nuclear reactors was imported from Russia.
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In an interview with CNBC on December 12, 2024, John Ciampaglia, CEO at Sprott Asset Management, discussed the current state and future prospects of the uranium market. Ciampaglia acknowledged that despite high demand, there has been no major increase in the production of uranium. He explained that this is a strategic decision rooted in supply discipline, a lesson learned when the industry was struggling to survive for nearly 10 years after the accident in 2011 at the Fukushima Daiichi Nuclear Power Plant in Japan. Ciampaglia noted that producers are now cautious about balancing future production with future demand, ensuring that they have built their contract books with utilities before ramping up production. This approach is aimed at maximizing value and revenue in the current market cycle.
Ciampaglia identified three major drivers: growing electricity consumption in emerging markets such as China and India, the pivot of Western countries toward energy security and decarbonization, and the development of small modular reactors (SMRs). He noted that big tech companies are investing in SMR technology, which is crucial for validating and advancing this technology. This investment is expected to boost the demand for uranium.
Ciampaglia also mentioned the gradual recovery of uranium prices, which had been stagnant in 2019 and 2020. The price is now slowly moving up, both in the spot market and the term market, reflecting the building demand. Higher prices are necessary to incentivize miners to expand production and develop new mines, which is essential for meeting the growing demand for uranium in the coming years.
As the world leans heavily on nuclear energy to power the next phase of technological and industrial advancements, uranium will remain a critical resource. With that in context, let’s take a look at the 10 best uranium stocks to invest in now.
An aerial shot of the uranium mines, demonstrating the company’s vast mineral resources.
Our Methodology
For this article, we used Finviz and Yahoo stock screeners to find companies that are involved in the mining, trading, or processing of uranium. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks with the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Uranium Stocks to Invest in Now
10. Ur-Energy Inc. (NYSEAMERICAN:URG)
Number of Hedge Fund Holders: 10
Ur-Energy Inc. (NYSEAMERICAN:URG) is a uranium mining and production company headquartered in Casper, Wyoming. The company operates two flagship properties in Wyoming, the Lost Creek, which has been in production since 2013, and Shirley Basin, which is fully permitted and expected to enter production by late 2025.
Ur-Energy Inc. (NYSEAMERICAN:URG) is actively exploring its existing projects to identify new opportunities and expand its resource base. At Lost Creek, the company has been focusing on greenfield and brownfield exploration, particularly in areas that were previously overlooked due to their depth. Historically, drillings have been limited to depths of about 350 to 400 feet due to water table constraints. However, recent advancements in in-situ recovery (ISR) techniques have opened up deeper roll fronts, which are now being explored for their potential. This approach also aims to extend the life of the mine and increase the company’s production capacity.
Ur-Energy Inc. (NYSEAMERICAN:URG) is investing in the development and maintenance of its processing plant at Lost Creek. The company has been implementing rigorous training programs for its staff and conducting regular maintenance to improve plant efficiency. The focus on training and maintenance is crucial as it ensures that the plant can handle the increasing flow rates from the wellfield. The company has also added more drill rigs and spaced out drills to increase flow rates.
9. Centrus Energy Corp. (NYSEAMERICAN:LEU)
Number of Hedge Fund Holders: 11
Centrus Energy Corp. (NYSEAMERICAN:LEU) is a leading supplier of enriched uranium fuel to nuclear power plants worldwide. The company specializes in uranium enrichment technology, particularly using advanced gas centrifuges, and is the only company that manufactures its centrifuges in the United States.
Centrus Energy Corp.’s (NYSEAMERICAN:LEU) operations are centered around its state-of-the-art facility in Piketon, Ohio, which is the only licensed and operating high-assay, low-enriched uranium (HALEU) production facility in the Western world. HALEU, which has isotope uranium-235 between 5% and 20% of the mass of uranium is essential for advanced nuclear reactors such as small modular reactors (SMRs) and microreactors. The U.S. Department of Energy has selected Centrus Energy Corp. (NYSEAMERICAN:LEU) among four awardees aimed at expanding HALEU production and deconversion. The HALEU production award spans a 10-year period with a total contract ceiling of $2.7 billion across all awardees. This funding is expected to substantially increase the company’s production capacity in Piketon.
Through these awards, the U.S. government aims to establish a reliable domestic supply chain for high-assay low-enriched uranium (HALEU), support advanced nuclear reactors, reduce dependence on Russian uranium, and advance clean energy objectives. Centrus Energy Corp. (NYSEAMERICAN:LEU) is also focusing on low-enriched uranium production capacity and has secured customer commitments to support the deployment of new Low-enriched uranium production capacity. The company has secured a cumulative total of approximately $2 billion in customer commitments, which are contingent upon securing the necessary public and private investment.
