With tight supply and growing demand for nuclear energy, uranium stocks like Cameco (CCJ) could push even higher.
For one, supply could get even tighter, with the Russian uranium ban starting on August 11. Two, according to Swiss Resource Capital, about 90 new nuclear plants are being planned, 61 are under construction, and decommissioned sites are being revived. Three, with the artificial intelligence boom requiring a good deal of energy, uranium could help fuel the need.
AI data centers need a tremendous amount of electricity. According to McKinsey, data center demand could grow about 10% a year.
In addition, CCJ is now oversold on RSI, MACD and Williams’ %R. From its last traded price of $47.36, I’d like to see Cameco initially rally back to $55 near term.
Helping, analysts at Bank of America added Cameco to its US 1 List. Goldman Sachs raised its price target to $56, with a buy rating. And RBC Capital recently said they’d buy on weakness.