Nuclear Stocks Advance on US-Saudi Civil Energy Deal
Agreement could open a major new market for American nuclear technology, adding to a sector rally fueled by rising uranium prices and significant domestic investment.
Shares in nuclear energy and uranium companies pushed higher this week following reports that the U.S. and Saudi Arabia have established an initial framework for a civil nuclear partnership. The deal, discussed during Crown Prince Mohammed bin Salman's recent visit to the U.S., could unlock a multi-billion dollar market for American reactor technology and fuel, benefiting key industry players like uranium producer Cameco Corp. (CCJ) and reactor component manufacturer BWX Technologies (BWXT).
The potential opening of the Saudi market represents a significant geopolitical and economic victory for the U.S. nuclear industry. According to reports on the diplomatic talks, the agreement aims to position American companies as preferred partners for Saudi Arabia's ambitious plans to develop nuclear power. The move is central to the Kingdom's strategy of diversifying its energy grid away from fossil fuels to meet soaring electricity demand.
This latest development adds fuel to a sector already experiencing a powerful rally. The news landed on fertile ground prepared by months of bullish momentum, underscored by a deepening global uranium supply deficit. Uranium spot prices surged throughout October, reaching yearly highs as utilities scrambled to secure long-term contracts amid a renewed global push for energy security and decarbonization.
The most significant catalyst arrived in late October, when the U.S. government announced a landmark $80 billion partnership to accelerate domestic nuclear power. The deal positions Cameco as a central player, leveraging its 49% stake in Westinghouse's advanced reactor technology. The announcement sent Cameco’s stock soaring over 23% to an all-time high on October 28, cementing its role not just as a fuel supplier but as a critical technology partner in the West's nuclear renaissance. On Tuesday, CCJ shares traded around $83.30, giving the company a market capitalization of over $36 billion.
Other companies in the nuclear supply chain are also poised to benefit. BWX Technologies, which supplies critical nuclear components and fuel to the U.S. Navy and commercial clients, has seen its stock perform strongly, trading Tuesday at approximately $175.91. The company's specialized manufacturing capabilities would be essential for building out any new reactor fleet.
Meanwhile, domestic uranium producers like Energy Fuels (UUUU) have also garnered intense investor interest. As the largest uranium producer in the United States, the company is well-positioned to capitalize on a renewed focus on sourcing nuclear fuel from reliable, domestic partners. Its stock was trading around $15.05 on Tuesday afternoon.
While the U.S.-Saudi agreement marks a pivotal step, the path to deploying American reactors in the Kingdom will require further detailed negotiations and regulatory approvals. Nonetheless, the preliminary pact serves as a powerful signal of the growing global momentum behind nuclear energy as a stable, carbon-free power source, providing a long-term tailwind for the entire sector.