For investors seeking momentum, VanEck Uranium and Nuclear ETF NLR is probably on the radar. The fund just hit a 52-week high and has moved up 91.13% from its 52-week low price of $64.26 per share.
But are there more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
NLR in Focus
The underlying MVIS Global Uranium & Nuclear Energy Index tracks the overall performance of companies involved in uranium mining or uranium mining projects; the construction, engineering and maintenance of nuclear power facilities and nuclear reactors; the production of electricity from nuclear sources; providing equipment, technology and/or services to the nuclear power industry. The product charges 56 bps in annual fees (See: all Alternative Energy ETFs here).
Why the Move?
As the demand for AI soars and clean energy needs grow, tech giants are looking at nuclear power to fuel energy-hungry data centers to train and operate large-scale AI models. Data centers are energy-intensive, with AI applications consuming even more energy than traditional computing.
The growing interest in nuclear energy and increasing AI-driven data centers are expected to boost the demand for uranium. Projections of uranium demand growing in the coming years are a key tailwind for the fund.
More Gains Ahead?
NLR may continue its strong performance in the near term, with a positive weighted alpha of 68.78 (as of Barchart.com), which gives cues of a further rally.
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VanEck Uranium and Nuclear ETF (NLR): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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