Could Buying Cameco Today Set You Up for Life?

Nuclear energy is making a comeback, and the world is paying attention. Electrification across the grid is accelerating while data centers to support artificial intelligence (AI) systems are consuming vast amounts of energy and on track to demand even more, adding to the urgent need for fresh sources of reliable, and preferably clean, energy.

Enter Cameco (NYSE: CCJ), a leading uranium miner positioned to capitalize on the surging demand for nuclear power. With a plethora of assets and a boost from the Trump administration, Cameco's stock is on the rise. Could buying this stock before the AI boom gets much older help set you up for life?

A key player in the nuclear space

Cameco is one of the world's largest uranium producers. It holds a 70% ownership stake in the high-grade McArthur River uranium mine. Its estimated reserves from that asset are 251 million pounds of uranium, and the mine is expected to run productively until 2044. It also has an 83% stake in the Key Lake uranium mill, which processes the ore to extract the metal.

Cigar Lake in Saskatchewan, Canada, is another high-grade uranium mine where Cameco has a 55% ownership stake. Its share of estimated uranium reserves here is 105.2 million pounds, and the mine's estimated lifespan runs until 2036. It also holds a 40% interest in Joint Venture Inkai in Kazakhstan, where its estimated share of reserves is 100.4 million pounds and the mine is expected to run until 2045.

Finally, the country owns a 49% interest in Westinghouse via a strategic partnership with Brookfield Renewable Partners. Westinghouse is an original equipment manufacturer (OEM) of nuclear reactor technology and a global provider of products and services to utilities and government agencies.

The buildout of new nuclear infrastructure should benefit Cameco

Cameco's investment in Westinghouse has been a pivotal driver of the stock's recent rise. Westinghouse provides a wide range of services to operators in the uranium and nuclear fuel services industries, including maintenance, engineering and design, components and parts, and other supplies for nuclear reactors. It is also the only fully European supplier of certified VVER fuel assemblies, which offer significant improvements in safety, efficiency, and operational stability compared to older reactor designs.

Image source: Getty Images.

In a strategic partnership with the U.S. government, Cameco, Westinghouse, and Brookfield Asset Management have teamed up to accelerate the deployment of nuclear power domestically, in accordance with an executive order signed by President Donald Trump on May 23.

As part of this initiative, $80 billion will be invested in building new reactors across the United States, utilizing Westinghouse's AP1000 and AP300 nuclear reactor technology. These are new generations of advanced reactors that deliver carbon-free baseload power with enhanced safety, simpler architecture, and easier deployment than prior designs.

Analysts at RBC Capital say that this partnership between Cameco, Westinghouse, and Brookfield could pave the way for a major nuclear new-build program not only in the U.S. but also across Western-aligned countries.

The outlook for Cameco stock

Cameco will play a key role in the U.S. nuclear energy sector. Its extensive assets across mining and refining, along with its share in Westinghouse, position it well to benefit from the coming buildout of U.S. nuclear infrastructure.

The stock is priced at 67 times next year's earnings. That is expensive, but investors are paying up because they believe the long-term potential for Cameco is solid. Analysts project earnings per share to be $2.25 in 2028. Hitting that target would require it to achieve a 26.5% compound annual growth rate from this year's projected EPS of $1.11.

Cameco stock is pricey, but its future is bright, and more opportunities are on the way. I'm bullish on the outlook for nuclear infrastructure development in the U.S., which is why I believe, as part of a diversified investment portfolio, Cameco could be a long-term holding that could help set investors up for life.

Courtney Carlsen has positions in Cameco. The Motley Fool recommends Brookfield Renewable and Cameco. The Motley Fool has a disclosure policy.