Key Points

• The One, Big, Beautiful Bill supported the nuclear industry, not least because it essentially curbed certain forms of renewable energy.

• The company also benefited from a large deal announced by a peer, and the performance of a portfolio business.

June was a fine month to be invested in uranium miner and nuclear energy services specialist Cameco (NYSE: CCJ). Nuclear received a significant boost from the Trump administration's One, Big, Beautiful Bill, which curbed subsidies and other advantages for producers harnessing rival energy sources. Developments elsewhere in the nuclear space also helped lift its stock.

Big and beautiful for the nuclear industry

The saga of Trump's bill didn't end until the president signed it into law in early July. Before that, however, it engendered controversy in several drafts by effectively bringing forward the expiration dates of federal subsidies that supported producers in the renewables segment, mainly solar and wind. Such measures survived, albeit in more limited form, in the final, passed legislation.

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Image source: Getty Images.

Notably, nuclear energy emerged largely unscathed, as its subsidy regime was mostly unchanged.

While lawmakers were in the early argument (whoops, discussion) and debate stages of the bill, the nuclear energy got a little power surge from a deal engineered between the industry's Constellation Energy and social media giant Meta Platforms, owner of Facebook, Instagram, and WhatsApp.

Under the terms of the arrangement, Constellation will supply Meta's server farms with over 1.1 gigawatts of energy from its Clinton Clean Energy Center nuclear plant in Illinois. The term of the deal, which is to kick in next June, is 20 years.

This should sound familiar to nuclear energy watchers and Constellation investors, as it has some of the dimensions of the deal struck between Constellation and another tech titan, Microsoft. The pair signed a contract for the former to provide the latter with power from the once-notorious Three Mile Island nuclear plant in Pennsylvania.

Cameco was not directly involved in the Constellation/Meta agreement, but of course, as with that monster piece of legislation, any win for one nuclear company represents a victory for the sector as a whole -- at least as far as Mr. Market was concerned.

A good direct investment

One development that did directly affect Cameco was early June's news about a company it partially owns, privately held nuclear power company Westinghouse Electric. Cameco said it expects an increase of roughly $170 million in additional non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for both Westinghouse's second quarter and the full year 2025.

Cameco, which holds a 49% stake in Westinghouse, anticipates that the higher EBITDA will "be taken into consideration" when the latter determines the 2025 distribution it'll pay the former.

So in short, Cameco is benefiting from top-down legislative developments, the rising popularity of nuclear power, and the operations of an important investment. It's no wonder investors were so energized by its stock last month.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool recommends Cameco and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Cameco (NYSE: CCJ) has gone through some very trying times in the past, largely due to its reliance on the price of a commodity when it comes to revenue and earnings. But the uranium that Cameco mines could be in for a big step change in price. Here are three reasons to buy this nuclear power industry supplier like there's no tomorrow.

1. Cameco is a picks-and-shovels nuclear play

Cameco mines for uranium, which is the primary fuel for nuclear power plants. It is also a minority owner in Westinghouse, a service provider to the nuclear power industry. Basically, it is a way to invest in nuclear power without having to buy it directly. If demand for nuclear power grows, Cameco should benefit right along with that growth.

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Image source: Getty Images.

There is a risk here, however, because nuclear power has a history of large and very public disasters. Nuclear meltdowns, perhaps not shockingly, have led to a pullback in demand for nuclear power.

Right now, however, nuclear power is experiencing a bit of a renaissance. Notably, it doesn't produce greenhouse gasses, making it a clean energy source. And since nuclear power provides always-on (or base load) electricity, it can be paired with intermittent power sources like solar and wind to create a more reliable power grid.

All in all, Cameco's role in supporting nuclear power plants with fuel and services makes it a great way to play the nuclear power renaissance that is taking place today. And that's buttressed by the fact that its operations are largely in developed and politically stable markets, which customers appreciate just as much as investors should.

2. Demand for energy is growing

But the shift toward clean energy isn't the whole story. Demand for electricity is set to see a step change over the next 20 years or so. Between 2000 and 2020, U.S. electricity demand increased by a total of 9%. Between 2020 and 2040, demand is expected to grow by 55%. There are multiple drivers of that surge, notably including artificial intelligence (AI), data centers, and electric vehicles (EVs). Electricity use is expected to increase from 21% of final energy use to 32% by 2050.

Meanwhile, there are new nuclear plant designs and options coming to market that should make nuclear power more attractive. Safety is likely to improve, costs are likely to drop, and speed to market is likely to increase. All these factors will help to make nuclear a key part of the electric transition that is happening, which will likely mean more demand for uranium to fuel nuclear power plants.

3. Supply doesn't look like it will meet demand

So, Cameco supplies an industry that appears to be seeing increased demand. Those are two good reasons to buy the stock. But there's one more reason to consider: the difference between supply and demand. Starting in 2030, Cameco expects demand to start outstripping supply, leading to a supply gap.

That will likely result in more investment in uranium mining, of course. But the gap grows rapidly due to the lull in mine development that happened following the Fukushima nuclear plant meltdown in 2011. Building mines is time consuming, expensive, and difficult, so it seems unlikely that the supply gap will have an easy solution. And that means uranium prices are likely to remain strong, if not rise, over time as demand for the nuclear fuel grows.

A lot of reasons to like Cameco, but there's one big risk to keep in mind

There are multiple reasons to like Cameco as an investment. But it is really appropriate only for more aggressive investors. That's because of the significant risk hinted at above: nuclear meltdowns. If there's another event of this nature, the view of nuclear power could quickly sour and send uranium prices -- and Cameco's stock -- crashing. If you can't stomach that risk, then the three reasons to buy Cameco outlined above probably won't be enough to entice you to buy this stock today, tomorrow, or any day.

Should you invest $1,000 in Cameco right now?

Before you buy stock in Cameco, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cameco wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

Shares in uranium fuel and nuclear energy services company Cameco (NYSE: CCJ) were up 11.7% by 11 a.m. ET today. The move comes as the market digests the news that Westinghouse Electric's adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) will be higher than previously expected in 2025.

That matters to Cameco investors because their company owns 49% of Westinghouse, with the rest owned by Brookfield Renewable Partners (NYSE: BEP), which also rose sharply today. Cameco expects its share of the increase in adjusted EBITDA expectations to be $170 million. "This expected increase will be taken into consideration in determining the 2025 distribution payable by Westinghouse to Cameco," according to the press release.

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The increase is related to two nuclear reactors at a power plant in Central Europe. The good news doesn't stop there, because Cameco expects Westinghouse to also benefit from providing fuel services to the plant.

A brighter outlook

The $170 million figure is notable for a company that reported approximately $1.1 billion in adjusted EBITDA for 2024.

Image source: Getty Images.

It's also important because it further confirms the improving momentum behind investment in nuclear energy as a solution to the challenge of obtaining a reliable source of energy while meeting net-zero emissions targets. As Cameco notes, Westinghouse's expected EBITDA growth over the next five years is 6%-10%. Meanwhile, Cameco's core uranium fuel and nuclear power products and services businesses are set to grow sales at a similar rate.

All of this adds up to an exciting growth outlook for an industry that was written off far too easily in the past.

Should you invest $1,000 in Cameco right now?

Before you buy stock in Cameco, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cameco wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners and Cameco. The Motley Fool has a disclosure policy.