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MARKETS STILL UNDERPRICING PUBLIC-PRIVATE NUCLEAR PUSH - WISDOMTREE

Investors are increasingly homing in on uranium's long‑term prospects, but markets still aren't fully reflecting the scale of public and private sector nuclear ambitions, says Mobeen Tahir, director of macroeconomic research and tactical solutions at WisdomTree.

He argues the commodity is emerging as a compelling long-term investment as nuclear commitments ramp up globally.

"Nuclear power is firmly back on the global energy agenda. Thirty-one countries have pledged to triple global nuclear capacity by 2050, while the United States has committed to quadrupling its capacity over the same period," he wrote in a Thursday note.

The global data centre boom is also reinforcing a push to nuclear as big tech firms strike new deals.

"These range from agreements linked to existing reactors to forward-looking commitments around small modular reactors, with deployments targeted for the early 2030s."

The WisdomTree team thinks markets have not fully priced in the implications for uranium and the broader nuclear value chain.

In October, the U.S. government, Brookfield and Cameco announced a strategic partnership centred on Westinghouse reactor technology - totalling $80 billion.

"What stood out was the market reaction. Cameco's share price rose by nearly 24% the following day, a reminder that large, credible nuclear developments can still catch investors by surprise," writes Tahir.

He also points out this deal that sent shares in Centrus Energy rallying.

"Together, these examples highlight how policy ambition can rapidly translate into earnings-relevant outcomes for companies exposed to critical parts of the nuclear ecosystem."

Indeed, all the accelerating demand comes amid constrained supply for uranium which is expected to tighten further.

"In this environment, long-term fundamentals support the strategic case for exposure not only to uranium itself, but also to miners positioned across the nuclear fuel cycle to benefit from a sustained supply response."

(Lucy Raitano)

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