From raw material to reactor: How Cameco, Stallion Uranium, and Constellation Energy are capitalizing on the AI-driven energy crisis

Cameco – Undergoing strategic change

Cameco has reinvented itself in recent years. The traditional mining operator of yesteryear has become a diversified player that now serves the entire nuclear energy value chain, from ore to finished fuel elements. The 2025 financial figures speak for themselves. Revenue rose to around USD 3.5 billion, while adjusted EBITDA increased by 26% to USD 1.9 billion. In particular, the stake in reactor manufacturer Westinghouse is proving to be a strategic stroke of luck. It has not only generated operating profits, but also special distributions of over USD 170 million. However, despite this operational strength, the question arises as to whether the market has already priced in all future hopes.

With a price-to-earnings ratio of over 113, the air is getting thin. Even optimistic assumptions about the development of the uranium market already seem to be reflected in the share price. If you compare the value of proven uranium reserves with market capitalization, you get a mismatch. With a current market value of around USD 49 billion, the company is worth almost three times as much as the net value of its recoverable reserves. Although the Westinghouse deal and rising uranium prices in the long term justify part of the premium, profits would have to increase many times over in the coming years to justify the current valuation.

The long-term outlook for uranium remains intact. Thirty-one countries have committed to tripling their nuclear power capacity by 2050. Growing demand from data centers for artificial intelligence and plans to build small modular reactors point to a sustained bull market. Cameco is pursuing a disciplined strategy and has secured long-term uranium supply contracts totaling 230 million pounds. For investors, it is a double-edged sword. The stock remains the best way to bet on the nuclear renaissance, but it may be wise to wait for a pullback. The stock is currently trading at USD 112.94.

Stallion Uranium – On the hunt for the next big thing

One of the most technically sound exploration programs of the year is currently underway in Canada's Athabasca Basin, one of the world's most productive uranium regions. Stallion Uranium has assembled the largest contiguous land package in the southwestern part of the basin, covering over 1,700 sq km in close proximity to several world-class deposits. However, it is not just the size of the landholding that makes this company particularly interesting for investors. The team working here is also a decisive factor. It is led by geologists who have been involved in significant discoveries in the past, including NexGen Energy's Arrow deposit, one of the highest-grade uranium deposits in the world.

The focus is currently on the Coyote target, a structural corridor that is now being drilled for the first time after more than a year of systematic geophysical surveys. The data is exceptional. The company has identified a combination of conductive structures, gravimetric anomalies, and proven structural complexity here. These are precisely the characteristics found in the major discoveries in the basin. The parallels to the Arrow discovery are striking, with the alteration signature at Coyote being even significantly larger. With two drilling rigs currently in operation, the company now aims to translate these theoretical models into tangible results.

The company has established a solid financial base and has nine prioritized drill targets. The shareholder structure is particularly noteworthy. Around 45% of the shares are held by insiders and management. This is a good signal for investors that those who know the business best are risking their own capital. The macroeconomic environment also favors uranium. Demand is rising due to the construction of new reactors in Asia and the revival of nuclear energy as part of the energy transition, while supply remains tight. For Stallion, the task now is to translate the promising geophysical signals into economically interesting mineralization with the current drilling program. The coming weeks are likely to be exciting. The share is currently trading at CAD 0.355.

Constellation Energy – From utility to tech enabler

Constellation Energy has undergone a fundamental transformation in recent months. The completed acquisition of Calpine for approximately USD 26.6 billion has created by far the largest electricity generator in the US. The expanded portfolio now combines the country's largest nuclear fleet with flexible gas-fired power plants and geothermal energy. This mix is crucial for shareholders because it combines weather-independent base load with controllable output. Its operational significance is evident in negotiations with hyperscalers. Constellation no longer just supplies electricity, but develops complete energy solutions for data centers, including grid connection and site infrastructure.

Demand for reliable energy for AI applications is growing rapidly. Constellation benefits from this in two ways. Existing nuclear power plants are operating at capacity factors of over 96%, while the acquisition of Calpine opens up access to new markets and customers. The agreement with CyrusOne for more than 1,100 MW in Texas shows how strategic the positioning is. At the same time, management is investing in the modernization of the plants. The Nuclear Regulatory Commission recently approved a USD 167 million digitalization project at the Limerick site to improve reliability and cybersecurity. Such investments will secure the operation of the plants for decades to come.

However, political headwinds are weighing on the stock. The government and several governors are pushing for reforms to the capacity markets in the PJM region to protect households from rising electricity prices. For Constellation as an independent producer, price caps are a sensitive issue. The market reacted accordingly and pushed the share price down from its highs. Nevertheless, the company has already sold a large part of its production on a long-term basis. Even though the share price has already rebounded to its current level of USD 303.01, this represents an attractive entry point for long-term investors.

While the AI revolution is causing electricity demand to skyrocket, these three companies are positioning themselves precisely at the nerve centers of this new energy crisis. Cameco benefits as the dominant primary producer along the entire value chain. Stallion Uranium, in turn, offers significant leverage on a potential discovery in the Athabasca Basin, where the first drilling program is currently underway. Finally, Constellation Energy is transforming itself from a traditional utility to an indispensable tech enabler for energy-hungry hyperscalers, even as regulatory intervention threatens margins. The nuclear renaissance has begun. Now it is all about precise positioning.