Commodities: Uranium
I read your notes about the pullback in uranium stocks, writing: “slower data-centre construction could temper expectations for incremental nuclear-power demand. Their weakness on Monday alongside Asian semiconductor stocks illustrates how closely the market has linked the themes.”
Have investors forgotten that there are 440 nuclear reactors that were here well before data centres, with a further 120 planned, all of which are useless without uranium?
Together with the rotation out of precious metals, this market is making less and less sense to me.
Fundamentals appear to have become the rationale of last resort?
Uranium has increasingly become a second-order AI trade as investors position for the enormous electricity requirements of data centres. The likes of Paladin Energy (PDN), Deep Yellow (DYL), and NexGen Energy (NXG) therefore carry indirect exposure: slower data-centre construction could temper expectations for incremental nuclear-power demand. Their weakness on Monday alongside Asian semiconductor stocks illustrates how closely the market has linked the themes.
With NEC & GQG looking at the financials – are these stocks in the oversold territory.
MM owns GQG and has sold NEC in Jan.
Are you considering picking up NEC at the current level ?
On a side note – what do you think about POW which is a new uranium player and recently IPO`ed ?
Hi MM,
SLX (flat): Finished broadly flat despite weakness across uranium names, a relatively encouraging reaction to a result where the headline loss was worse than expected but revenue surprised materially to the upside. For Silex, the P&L remains a secondary consideration at this stage — it all boils down to the commercialisation of its enrichment technologies. With a well-funded balance sheet and tangible progress at the Quantum Silicon facility, there was enough in the update to keep that story moving forward.
NXG has been a steady performer in 2026 advancing almost +10%. After reaching a high in late January alongside the broader nuclear/AI power rally, the pre-revenue dual-listed developer was caught in the sector-wide correction, while they also pushed first production at its flagship Rook I project to FY31. However, continued drilling success and the commencement of construction have helped NXG hold up better than many uranium developers.
DYL has been the laggard of the uranium cohort in 2026, falling ~8% YTD, the weakness largely reflects a sharp de-rating from its January peak as DYL transitions from a development story into a capital-intensive construction phase, requiring significant investment before meaningful revenue arrives.
CCJ is a US$44bn uranium giant CCJ which is more than 10x larger than local player Paladin (PDN). CCJ like many in the sector has endured a volatile 2026, with CCJ and the URNM ETF peaking and bottoming at almost identical times, although CCJ has modestly outperformed the ETF YTD thanks to its scale, diversified operations and exposure to Westinghouse. The January rally was fuelled by enthusiasm around nuclear power, AI-driven electricity demand and uranium contracting, while a C$2.6bn supply agreement with India in March reinforced the longer-term demand story.
Uranium equities surged into late January, with related ETFs all peaking in the last few days of the month as investors embraced the nuclear power theme, increasingly linked to rising electricity demand from AI and data centres. Interestingly, the equities initially led the underlying uranium price higher, reflecting strong expectations for future demand rather than an immediate tightening in the physical market.
