## Cameco's 55% Year-End Rally: What's Driving This Next Big Stock Move?

**The uranium market is fundamentally shifting.** Cameco [(NYSE: CCJ)](/market-activity/stocks/ccj), the world's second-largest uranium producer, has captured this transformation better than most. With shares up 55% throughout 2025 and closing near record highs of $106.91 in late October before pulling back to $79, the company's recovery tells a broader story about nuclear energy's renaissance.

For over a decade, Cameco was a cautionary tale. Between 2011 and 2021, the Canadian miner watched its revenue collapse from $2.4 billion to $1.2 billion—a full decade without meaningful growth. The Fukushima incident scattered global nuclear ambitions, COVID-19 disrupted mining operations, and currency headwinds pounded the bottom line.

But that narrative has reversed entirely. By 2024, Cameco's revenue nearly doubled to $2.3 billion. The uranium spot price—which had tumbled to $35 per pound in 2020—surged to $72.63 by year-end. This recovery stems from a perfect storm: massive cloud infrastructure buildouts, AI's insatiable power demands, renewed government commitments to low-carbon energy, and geopolitical supply disruptions in uranium-rich regions.

## Strategic Pivots Beyond Mining

Cameco's transformation extends well beyond simply mining more uranium. In 2021, the company boosted its stake in Global Laser Enrichment (its uranium enrichment partnership with **Silex**) from 24% to 49%. This move essentially created a vertically integrated nuclear fuel supplier—a one-stop shop capable of mining, converting, and enriching uranium for customers.

The company's 2023 partnership with **Brookfield Asset Management** to acquire Westinghouse Electric marked an even bolder strategic shift. That 49% ownership stake in the nuclear technology and reactor design firm diversifies Cameco beyond cyclical commodity mining. It provides exposure to the entire nuclear power ecosystem while stabilizing returns during uranium price fluctuations.

These moves position Cameco at the intersection of multiple growth trends: mine production, fuel enrichment technology, and reactor design and construction.

## Viewing the 2025-2027 Growth Pipeline

Cameco guided for 2025 uranium output between 31 million and 34 million pounds at an average realized price near $87 per pound—above current spot prices around $80. From 2024 through 2027, Wall Street expects revenue to expand at an 8% compound annual rate, while earnings per share could accelerate at roughly 90% annually.

Near-term supply tightness will likely support these numbers. Cameco recently reduced production guidance for its McArthur River mine due to ground-freezing complications, but this mirrors output cuts across the industry at **Kazatomprom** and other major competitors. Constrained supply typically means higher uranium prices—a dynamic that actually benefits Cameco's profitability despite the output miss.

The International Atomic Energy Agency projects nuclear capacity could expand 2.5 times between now and 2050. Emerging reactor technologies—including small modular reactors suitable for remote locations—should expand the addressable market significantly beyond traditional large-scale nuclear plants.

## The Volatility Question

Cameco commands a premium valuation at 52 times forward earnings, reflecting market enthusiasm about nuclear energy's long-term runway. That's a steep multiple for a company still subject to commodity price swings and geopolitical risk. A major accident or pandemic could derail the bull case.

Yet the stock remains in relatively early stages of its current expansion cycle. The convergence of AI power demand, manufacturing reshoring, decarbonization mandates, and supply shortages suggests the secular backdrop remains intact. Shareholders should expect continued volatility, but patient investors could capture substantial gains as this next big stock continues benefiting from nuclear energy's pivotal moment.