Two money managers bet big on uranium, predict long shelf life for gains

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🗞️ Driving the news: Uranium investment funds are surging as institutional investors bet on nuclear power’s long-term growth
• Sprott Asset Management’s Physical Uranium Trust and Uranium Miners ETF (URNM) have risen 22% and nearly 38% respectively in two months
• VanEck’s Uranium and Nuclear ETF (NLR) is up 42%, fueled by increasing global energy demand, AI-powered data centers, and renewed political momentum for nuclear development, including support from the Trump administration

🔭 The context: The 2022 European energy crisis and recent grid failures in southern Europe have reinvigorated interest in nuclear as a stable, low-emission energy source
• Despite longstanding concerns over cost, waste, and construction delays, countries are reversing previous anti-nuclear policies
• Firms like Cameco, NAC Kazatomprom, and new tech players like Oklo and Nuscale Power are gaining traction as governments seek to decarbonize and enhance energy resilience

🌍 Why it matters for the planet: Nuclear energy offers zero direct emissions and high energy density, making it a potent tool for decarbonization
• Its reliability is increasingly essential for grid stability, particularly in powering AI data centers and ensuring national energy security
• However, its deployment faces challenges: lengthy project timelines, regulatory bottlenecks, and the need for public trust in next-generation reactor safety.

⏭️ What's next: President Trump’s recent executive orders aim to reform the Nuclear Regulatory Commission, streamline reactor approvals, and expand uranium mining on federal lands
• Companies like Oklo, recently selected to supply nuclear power to a U.S. Air Force base in Alaska, could benefit from federal land access and fast-tracked approvals
• As geopolitical and technological pressures grow, nuclear investments may remain a key strategic sector.

💬 One quote: “Every country around the world has flipped back to nuclear power, which is a very powerful signal,” — John Ciampaglia, CEO, Sprott Asset Management

📈 One stat: The VanEck Uranium and Nuclear ETF (NLR) has climbed approximately 42% in the past two months

See on illuminem's Data Hub™ the sustainability performance of Cameco, Kazatomprom, Oklo and their peers Constellation Energy, and Westinghouse

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