After a volatile decade of busts and rallies, uranium is back in the headlines. Shares in uranium miners across the world have surged as a new Presidential order signalled the potential revival of the US nuclear industry. At the heart of this potential renaissance? Artificial Intelligence (AI). As AI-driven energy needs soar and geopolitical tensions rise, nations are rethinking nuclear, and the uranium sector is once again in the spotlight.
Key Takeaways
- Uranium stocks rebound as President Trump signs an Executive Order that aims to revive the US nuclear industry.
- AI-driven power demand and energy security concerns are reigniting global interest in nuclear energy.
- Long-term fundamentals for uranium continue to be strong, driven by geopolitical urgency and decarbonisation goals.
Background: From Fukushima to Fusion of Interests
The uranium market has always been cyclical, but few commodities are as sensitive to public policy and sentiment. After the 2011 Fukushima disaster, nuclear development slowed dramatically, dragging uranium prices down with it. Producers shuttered mines, and demand forecasts crumbled.
Past performance is no guarantee of future returns.
Recovery began tentatively in 2021, accelerated by post-pandemic energy inflation and Russia’s 2022 invasion of Ukraine, which disrupted global energy markets. Uranium peaked in early 2024 amid supply concerns before dipping on the back of new energy efficiency claims from generative AI models. Yet, the long-term energy implications of AI remain largely misunderstood — and likely underestimated.
Supply & Demand: The AI Factor and Geopolitical Shifts
The latest spike in uranium equities was triggered by reports, followed by official confirmation of new Executive Orders that prioritises US nuclear development.
The orders aim to:
- Invoke the US Defence Production Act to reduce dependence on Russia and China for enriched uranium.
- Ease regulatory burdens for new nuclear reactor construction.
- Direct the Energy and Defence Departments to identify federal lands for nuclear projects.
- Accelerate financing through the Loan Programs Office.
But there’s more than hype driving the recent spike in uranium stocks. AI is set to become one of the biggest incremental energy consumers in decades. The exponential growth of data centres, coupled with rising interest in AI applications such as ChatGPT and Claude, is already pushing utility demand upward for the first time in 20 years. In the US, Chris Wright, the US Energy Secretary, has called this “Manhattan Project 2”.
Nuclear energy offers base-load capacity, zero-carbon output, and scalability — all critical in meeting future AI-related electricity loads without derailing climate goals.
Structural Constraints: Why Supply May Struggle to Keep Up
Even as demand strengthens, uranium supply remains tight. Years of underinvestment have left the sector vulnerable to price shocks. Only a handful of miners, such as Cameco, Kazatomprom, and a few Australian juniors, have near-term capacity to scale up.
Long permitting timelines, environmental opposition, and geopolitical risks are slowing new supply projects. President Trump’s nuclear-focused reforms are aimed at speeding up infrastructure timelines and improving access to financing.
Looking Ahead: Reasons to Stay Bullish
While the recent rally was triggered by news-driven speculation, the broader case for uranium is increasingly compelling:
- Energy security is back on the political agenda, and nuclear power offers autonomy without carbon.
- AI-driven energy growth could keep power demand elevated for decades.
- Public sentiment is gradually shifting, with new technologies (like small modular reactors) reframing nuclear as a future-forward solution.
Ways to Invest
The Global X Uranium ETF (ASX: ATOM) invests in a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.
Additionally, the Global X Artificial Intelligence Infrastructure ETF (ASX: AINF) targets AI infrastructure, diversifying exposure to electric utilities, data center equipment manufacturing, and energy commodities like uranium and copper, positioning investors for potential long-term growth in AI’s backbone.
The uranium market may still be a rollercoaster, but the structural tailwinds appear to be aligning. As AI reshapes the global economy and energy demand soars, nuclear power’s role in the future energy mix is hard to ignore. Whether or not the latest rally has legs, the long-term outlook for uranium appears brighter — and more essential — than it has in years.
