Something changed in the uranium market. Related actions accumulate 11 weeks rising. The trigger? An explosive combination of policy, energy demand and supply deficit.
Let’s start with the political. In May, Donald Trump He gave his support to nuclear energy with a series of executive orders. The objective is to quadruple the nuclear capacity from here to 2050.
In addition, the “One Big Beautiful Bill” advances in Congress, which takes renewable energy subsidies but reinforces the benefits for nuclear projects. The signal is clear and seeks to support this sector.
And if you add to that the new role of artificial intelligence with its great energy consumption, you realize why companies such as Meta and Microsoft have already signed 20 -year contracts to supply their data centers with nuclear energy. There is an urgent search for clean, reliable and constant energy.
And there are not many energies that can meet that. The uranium does.
What is uranium?
It is the fuel of nuclear plants. And it is not just mining: you have to convert it, enrich it and transport it. And the US today depends on Russia and China for that. That is why Trump wants to rearm the entire nuclear chain.
Conclusion? A perfect storm is brewing so that the price of uranium continues to rise. Not only by demand, but also by limited supply and a fragile supply chain.
How can we take advantage of this as investors?
There are two ETFs (funds that are quoted in the stock market) that allow to expose themselves to the sector:
- URA: It is the best known ETF. It has exposure to uranium producers such as Cameco.
- NLR: is focused on utilities companies that operate nuclear plants, such as constellation energy
Ura points directly to uranium. NLR, on the other hand, diversifies and combines miners with companies that generate nuclear energy. Both can be vehicles to get on this trend. And it is worth clarifying that they have a high correlation, that is, they move practically the same.
It must be understood that they are extremely volatile actions, so it is important to control the size of the position well, since it is not a conservative position like gold, for example.
Let us also remember that the uranium rally is not just because of fundamentals. It is a strategic revaluation in an unstable world. Japan reopens reactors, France bets on SMR (small modular reactors) and the US wants to ensure its supply chain. The tension with Iran adds pressure.
The message is clear: nuclear energy ceased to be an option to become a priority. It is not surprising that the shares of the sector have been upwards 11 weeks. It is a matter of geopolitics.
Is it late to get on the uranium wave? Not at all. Everything indicates that the world will need much more uranium than it has today. And the trend is bullish. No one sees the future, but the chances are in favor.
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Note: The material contained in this note should not be interpreted under any point of view as an investment council or recommendation for the purchase or sale of a particular asset. This content has only educational ends and represents only an opinion of the author. In all cases it is advisable to advise with a professional before investing.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
