The AI Boom Requires More Power: Cameco, Standard Uranium, and 2G Energy Stand to Benefit!

2G Energy: German Engineering for Data Centers

The North American subsidiary of 2G Energy AG has secured the long-awaited major contract to equip data centers in the US. The company, based in Heek, North Rhine-Westphalia, announced the order to equip data centers with standalone containerized power supply systems. The contract stipulates that the systems will be delivered over several years starting in the second half of 2026. As a result, 2G Energy's management has raised its revenue forecast for 2026 to the upper end of the guidance range of EUR 440 to 490 million. Since the company has historically been known for its conservative guidance, it is reasonable to assume that EUR 490 million may not be the upper limit. However, the order also has a slight downside: machine deliveries will temporarily play a "greater role" in total revenue, meaning that the "Group EBIT margin in 2026 cannot necessarily be expected to reach the upper end of the forecast range (9.5–10.5%)," the company stated in its announcement. For 2027, 2G Energy now expects significant growth with group-wide revenue of EUR 570 to 620 million. Profitability, measured by the EBIT margin, is expected to improve to over 11%.

The market reacted euphorically to the news. The stock rose by more than 20% immediately. Since the low at the end of November, the share price has more than doubled. Investors wrote on social media: "The management has delivered as promised."

There are also rumours of further orders of this kind from the US. And there is likely a good reason for that. 2G Energy's technology (decentralized combined heat and power plants, CHP) is a system solution for addressing the two biggest infrastructure challenges: base-load power demand and waste heat management. Data centers require enormous amounts of electricity for their servers and for cooling. A 2G CHP plant generates electricity on-site with high efficiency. The resulting engine waste heat is converted directly into useful cooling for server cooling via a downstream absorption chiller (AKM). The systems function as standalone or emergency power systems, providing protection against grid fluctuations and outages, strengthening the data center's required Tier certification (reliability), and relieving the burden on the overloaded public power grid.

Given the growth in demand outlined above, further orders are therefore not unlikely. In this euphoric stock market environment, investors are likely to continue to classify the stock as a German AI winner. Currently, the share is consolidating below its all-time high. Short-term profit-taking could still put downward pressure on the price.

Standard Uranium: Investors Are Sensing an Opportunity

In the US, too, the debate over new nuclear power plants has been ongoing for some time. However, thanks to the US government's May 2025 executive order to deregulate and massively expand nuclear energy, this market is also booming! The US goal is to expand capacity to 400 GW by 2050. The Palisades nuclear power plant in Michigan was already reactivated in the fall of 2025 and is likely on the verge of restarting. The infamous Three Mile Island power plant (renamed Crane Clean Energy Center) is currently being prepared for Microsoft to go back online in 2027.

This, however, also increases medium- to long-term uranium demand. Furthermore, the US no longer plans to import uranium from Russia, as Congress decided under the previous administration. Accordingly, Canada, the world's second-largest producer behind Kazakhstan, finds itself in a favourable position. Exploration activities there have increased massively and continue to do so. After all, it is not just the US that is active. China alone is currently building more than 30 nuclear power plants, and other countries are also actively building them. These are all potential customers for the global market.

Standard Uranium is currently benefiting primarily from the boom in exploration activities in Canada. In recent years, under founding CEO Jon Bey, the company has secured projects in the Athabasca Basin in the province of Saskatchewan. That is where the heart of the national uranium industry beats. As a so-called project generator, the company handles the groundwork for uranium projects, such as mapping and sampling. Promising exploration projects are then passed on to other explorers. In return, Standard Uranium receives shares, cash, and a stake in the exploration's success. This also passes the risk on to the partner. Bey recently told investors that the company is in ongoing negotiations. As such, announcements regarding new partnerships could still come this year.

Currently, however, the focus is likely to be primarily on Davidson River. The company is developing this exploration project itself. It is strategically located near established uranium deposits such as NexGen's Arrow and Fission Uranium's Triple R in the Athabasca Basin. Standard Uranium is on the verge of launching a major summer drilling program here. This marks the first time in four years (from 2020 to 2022) that Standard Uranium is returning to the project with significantly improved geological data. Details can be found in this video from the IIF investor conference:

https://www.youtube.com/watch?v=Xl87WOfLpUU

Investors have clearly gotten a taste for more. Although the original drilling program was already fully funded, an additional CAD 4 million financing round has now been launched at the urging of investors. The shares are to be placed at a price of 10 cents. In addition, there is a warrant priced at 15 cents. The funds are intended to expand the drilling program at Davidson River. In the coming weeks and months, the stock is likely to be driven primarily by drilling results and potential new partnership deals. Standard Uranium currently has a market capitalization of only about CAD 14 million. For risk-aware investors, there is upside potential here.

Cameco: Stock Pricing in AI Demand

Cameco is one of the world's largest publicly traded uranium producers. The stock's performance reflects the renaissance of nuclear energy over the past half-decade. The stock is in an overarching, extremely strong bull market phase, though consolidation is currently the order of the day. At the end of January, Cameco hit an all-time high of USD 134.09 (or approximately CAD 181). The stock is currently trading about 15% lower.

As a result of the war in Ukraine and the uncertain geopolitical situation, the company has emerged as the preferred and, above all, reliable partner for Western energy suppliers. At the end of 2023, Cameco (together with Brookfield) also completed the acquisition of Westinghouse Electric, the leading US player in reactor design, nuclear fuel production, and maintenance. This transformed Cameco from a pure mining operator into a vertically integrated nuclear conglomerate. As a result, the company now holds a prominent position in the evolving US market.

And this is now also reflected in the quarterly figures. In early May, the Saskatoon-based group presented its financial results. According to the report, the company showed strong growth: revenue rose by 7% to CAD 845 million. Net income climbed even more sharply, by 87%, to CAD 131 million. Cameco benefited particularly from developments in production, which rose slightly to 6.2 million pounds of uranium. However, thanks to higher sales volumes (7.8 million pounds) and prices, the average realized sales price rose to USD 66.21 per pound. Cameco currently holds approximately CAD 1.1 billion in cash and short-term investments. The company has confirmed its annual forecast and still plans to produce 19.5 to 21.5 million pounds of uranium. The stock is extremely highly valued. The P/E ratio for this year is 95 to 105. This is expected to decline significantly in the coming years as profits gradually rise. With this high valuation, the market is primarily pricing in long-term opportunities. Uranium supply contracts and the construction of nuclear power plants are associated with extremely long terms and secure cash flows. Accordingly, investors should never apply uranium spot prices one-to-one to producers. A pricing premium is usually commanded in the market for a contractually secure supply.

The AI boom is driving energy demand, while the US is experiencing a nuclear power renaissance. 2G Energy has now secured its first contract for AI data centers. The stock has recently performed spectacularly and is among the AI winners from Germany. Standard Uranium, in turn, is benefiting from strong exploration activities in Canada while simultaneously developing its own project. The latest financing round demonstrates strong investor interest. Cameco is the established supplier of uranium in North America. As a producer and through its joint venture, the company benefits directly from the resurgence of nuclear energy. But caution is advised, as a significant amount of future growth is already priced into the stock.