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Are nuclear stocks set to crash as Uranium price hits 12-month low?
The post Are nuclear stocks set to crash as Uranium price hits 12-month low? appeared on BitcoinEthereumNews.com. Nuclear power is back in the spotlight. Unlikely as it may seem, this once underappreciated way of generating power is gathering steam — for one, nuclear does fall under the banner of clean energy, and two, it’s arguably the best, consistent source of baseload power. This new wave of attention is owed to the rapid rise and expansion of artificial intelligence — with key players in the space such as Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) pivoting to nuclear as a way to service the ever-increasing energy needs of data centers. Newfound electricity demand has significantly buoyed utilities in 2024 — the best performing stock in the S&P 500, at the time of writing, is Vistra Corp (NYSE: VST), which has secured year-to-date (YTD) returns of 197.17%. However, this new nuclear renaissance is far from a done deal — the strategic investments of today will take years to play out, and uranium prices have just hit a 12-month low. With this key commodity trading at such low prices, is a downward correction in the cards for nuclear stocks? Uranium price chart. Source: Barchart Low uranium prices will negatively impact nuclear stocks — but not all of them The price of uranium as a commodity has the largest and most immediate effect on companies that are engaged in mining. In contrast, for businesses in the power generation side of the business, nuclear fuel costs amount to just 15% to 20% of the total cost of running a plant, per the World Nuclear Association. Producers like Cameco (NYSE: CCJ) will feel the effect of these low prices most keenly — while energy companies such as Dominion Energy (NYSE: D) aren’t as likely to be affected. In fact, electricity producers could even stand to benefit from low uranium prices — although if…
The post Are nuclear stocks set to crash as Uranium price hits 12-month low? appeared on BitcoinEthereumNews.com.
Nuclear power is back in the spotlight. Unlikely as it may seem, this once underappreciated way of generating power is gathering steam — for one, nuclear does fall under the banner of clean energy, and two, it’s arguably the best, consistent source of baseload power. This new wave of attention is owed to the rapid rise and expansion of artificial intelligence — with key players in the space such as Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) pivoting to nuclear as a way to service the ever-increasing energy needs of data centers. Newfound electricity demand has significantly buoyed utilities in 2024 — the best performing stock in the S&P 500, at the time of writing, is Vistra Corp (NYSE: VST), which has secured year-to-date (YTD) returns of 197.17%. However, this new nuclear renaissance is far from a done deal — the strategic investments of today will take years to play out, and uranium prices have just hit a 12-month low. With this key commodity trading at such low prices, is a downward correction in the cards for nuclear stocks? Uranium price chart. Source: Barchart Low uranium prices will negatively impact nuclear stocks — but not all of them The price of uranium as a commodity has the largest and most immediate effect on companies that are engaged in mining. In contrast, for businesses in the power generation side of the business, nuclear fuel costs amount to just 15% to 20% of the total cost of running a plant, per the World Nuclear Association. Producers like Cameco (NYSE: CCJ) will feel the effect of these low prices most keenly — while energy companies such as Dominion Energy (NYSE: D) aren’t as likely to be affected. In fact, electricity producers could even stand to benefit from low uranium prices — although if…
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