Big Tech Raises Capex: A Steady Industrial Player Thrives Amidst AI Competition

Key Points

• The increasing demand for artificial intelligence (AI) infrastructure is prompting significant capital expenditure from major tech companies.

• Alphabet raised its 2026 capital expenditure forecast to between $195 billion and $205 billion, while Amazon increased its 2023 estimate from $200 billion to $220 billion.

• Cameco, based in Saskatchewan, sold 33 million pounds of uranium last year and is positioned to benefit from the anticipated doubling of global nuclear power capacity by 2050.

Investments in AI infrastructure present a significant opportunity for companies like Cameco, which supplies uranium for nuclear power. The World Nuclear Association suggests that worldwide nuclear capacity could double or triple by 2050, with Goldman Sachs predicting a rise from 440 to 500 nuclear reactors by 2030, alongside over 400 proposed or planned reactors.

Despite a lackluster performance this year, analysts still recommend Cameco stock as a strong buy, with an average target of $125.25—about 30% higher than its current value. The growth in nuclear energy, coupled with the accelerating demand for AI, positions Cameco favorably for the future.