7 Best Uranium Stocks To Buy According to Hedge Funds

3. Uranium Energy (NYSE:UEC)  

Number of Hedge Fund Investors: 28

Uranium Energy (NYSE:UEC) is a US-based uranium mining company with projects focused on in-situ recovery (ISR) mining in Wyoming and Texas. Uranium Energy (NYSE:UEC) has been expanding its portfolio through acquisitions of key uranium assets and is strategically positioned to benefit from increasing domestic uranium demand, especially in light of national security concerns regarding uranium supply.

Uranium Energy (NYSE:UEC) employs a cutting-edge mining technique called In-Situ Recovery (ISR) at several of its uranium projects, including Palangana, Burke Hollow, Goliad, and Reno Creek. This low-cost and environmentally friendly method involves injecting oxygenated groundwater into uranium ore bodies to dissolve the uranium. The resulting uranium-rich solution is then extracted to the surface and concentrated onto resin beads, which are subsequently transported to a processing plant for further concentration. Uranium Energy’s (NYSE:UEC) ISR technology enables it to produce uranium in a cost-effective and environmentally sustainable manner.

The demand for uranium is linked to the explosion of artificial intelligence and data centre development. Data centres, which power the digital backbone of AI applications, consume vast amounts of electricity. This demand, combined with the increasing prevalence of electric vehicles and industrial growth, has put immense pressure on the U.S. electricity grid. Nuclear energy, the largest source of carbon-free power in the U.S., provides about 19% of the nation’s electricity and Uranium Energy (NYSE:UEC) is well-positioned to meet this growing demand.

Uranium Energy (NYSE:UEC) is debt-free, which makes it a compelling investment opportunity, as the demand for uranium is set to skyrocket in the coming years. With the surge in AI technologies and companies such as Microsoft, Amazon, and Oracle investing in AI, and data centers, nuclear energy will play a critical role in powering the vast data centers that drive AI. In the second quarter, the company’s stock was held by 28 hedge funds with stakes worth $148.80 million. Driehaus Capital is the largest shareholder in the company with a stake worth $54.97 million as of June 30.