With uranium supply-demand issues getting even tighter, keep an eye on NexGen Energy (SYM: NXE).
A buy on weakness, NXE could easily push higher on a few key catalysts.
One, the Russian uranium ban goes into effect on August 1. Two, the government of Kazakhstan just increased its extraction tax, which will limit uranium supply growth. Three, with the artificial intelligence boom showing no signs of slowing, uranium could help fuel the energy need of data centers.
“AI data centers alone are expected to add about 323 terawatt hours of electricity demand in the U.S. by 2030, according to Wells Fargo. The forecast power demand from AI alone is seven times greater than New York City’s current annual electricity consumption of 48 terawatt hours. Goldman Sachs projects that data centers will represent 8% of total U.S. electricity consumption by the end of the decade,” says CNBC.
All of which is a strong catalyst for uranium. In addition, if NXE’s Rook 1 project sees Canadian approval, it could be one of the biggest uranium mines in the world.