Shares in Uranium Energy (NYSEMKT: UEC) increased by an impressive 17.8% during the week leading up to Friday. This spike follows positive developments in the nuclear sector, benefiting Uranium Energy as a specialized nuclear stock.
Tech Giants Embrace Nuclear Energy
Alphabet‘s Google is the latest major tech company to enter the nuclear energy space. The cloud services giant has signed a power purchase agreement (PPA) to procure electricity generated from nuclear sources in collaboration with Kairos Power. The goal is to have the first of several small modular reactors operational by 2030, with plans for further types in the future.
Google’s agreement continues a trend among tech companies, following Amazon Web Services‘ deal with Talen Energy earlier this year to purchase power from a nuclear plant in Susquehanna, Pennsylvania. Additionally, Microsoft recently revealed a 20-year PPA with Constellation Energy to reactivate the Three Mile Island nuclear facility.
Uranium Energy Positioned for Growth
The increasing readiness of cloud service providers to buy nuclear-powered electricity indicates growing trust in the nuclear industry. This trend could have broader implications, given the extensive influence these companies hold. Nuclear energy is known for its reliability, assisting these companies in achieving their net-zero emission targets.
Image source: Getty Images.
As a leading uranium miner with operational sites in South Texas and Wyoming, Uranium Energy is well-positioned to take advantage of this trend. The company owns seven mining projects with the necessary permits across the U.S., Canada, and Paraguay, allowing it to ramp up uranium extraction to meet anticipated increases in demand.
If the current momentum holds, Uranium Energy’s outlook could markedly improve in the years ahead.
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