Cameco Emerges as the Stealth Play in Big Tech's AI Capex Boom

Alphabet lifted its 2026 capital expenditure forecast to between $195 billion and $205 billion, up from a prior range of $180 billion to $190 billion. Amazon raised its 2025 capex outlook to $220 billion from an earlier $200 billion. Meta issued new debt to fund artificial intelligence investments. The three companies are not slowing down their AI infrastructure buildout.

That spending flows to obvious names like Nvidia, which makes the processors. It also reaches less direct beneficiaries: Vertiv supplies power distribution and chip cooling. GE Vernova builds natural gas turbines that can power a data center. One company sits further upstream and may be the most undervalued play on the trend.

Cameco, based in Saskatchewan, is a major uranium producer. It sold 33 million pounds of yellowcake last year, the fuel needed by most nuclear reactors. The company also owns a 49% stake in Westinghouse Electric, which makes and services reactors in more than 90 facilities across 21 countries. Cameco reported $3.5 billion in revenue for 2025 and adjusted net earnings of $627 million, well above the prior year.

Nuclear power is back in vogue as electricity demand surges and the world tries to cut fossil fuel use. The World Nuclear Association sees global capacity doubling by 2050, possibly tripling. Goldman Sachs predicts the number of reactors could hit 500 by 2030, up from roughly 440 today. Another 400-plus are proposed or planned, the World Nuclear Association said. Almost all will run on uranium-235, much of it starting at Cameco's mines.

The timing is not immediate. Building a nuclear plant takes years, while data centers need power now. GE Vernova's gas turbines can fill the gap faster. Gas prices could rise as consumption ramps up, making nuclear more cost-competitive over the long run. Existing plants are also lasting longer than expected. The U.S. Nuclear Regulatory Commission reports some facilities initially licensed for 40 years could operate for 80. Newer designs may last even longer.

Tech companies and utilities are forming partnerships beyond the typical buyer-seller relationship. Microsoft and Constellation Energy agreed in late 2024 to restart a reactor at Three Mile Island to power a data center. Vistra is working with Amazon and Meta to supply nuclear power for their AI facilities, justifying its investment in plants that connect to the same grid serving retail customers.

Cameco's stock has been flat this year after a strong run in 2024. Analysts still rate it a strong buy, with an average price target of $125.25, implying about 30% upside from current levels. The payoff may take longer than the initial AI hype suggested, said the World Nuclear Association, as new reactors take years to come online. The next chapter will separate the winners from the also-rans. Cameco is positioned to be among the winners, with enriched uranium demand only growing as more data centers plug into the grid. For broader context on how commodity markets intersect with AI infrastructure, see our commodities analysis.