Why Cameco, NuScale Power and Energy Fuels Stocks Are Up Today

When new legislation is presented to the president, investors often pay attention. And that’s exactly what’s happening today with nuclear energy stocks. Cameco (NYSE: CCJ), NuScale Power (NYSE: SMR)And Energy Fuels (NYSEMKT: UUUU)These stocks are all up after the market learned that President Biden signed a bill yesterday that encourages the growth of nuclear energy.

As of 12:01 p.m. ET, Cameco shares were up 9.2%, while NuScale Power and Energy Fuels were up 6.1% and 7.4%, respectively.

The Basics of the Bipartisan Nuclear Energy Bill

The Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act aims to accelerate the deployment of innovative, versatile nuclear assets to address many of the challenges facing nuclear energy in the United States. It aims to make the development of innovative nuclear assets more financially attractive in a number of ways. For example, the ADVANCE Act will reduce regulatory costs for companies interested in licensing advanced nuclear reactor technologies and provide a financial incentive for companies that deploy next-generation nuclear reactor technologies.

The ADVANCE Act received strong bipartisan support in Congress, with the Senate passing it 88-2 and the House passing it 393-13. Discussing the merits of the legislation, Rep. Frank Pallone (D-NJ), ranking member of the House Energy and Commerce Committee, said, “By ensuring we can deploy safer, more reliable nuclear power, the ADVANCE Act will help combat our dependence on dirty fossil fuels, strengthen our energy independence, and ensure our economic security.”

Investors are particularly interested in Cameco and Energy Fuels today because they are two of the largest producers of uranium. If the number of nuclear power plants increases, the demand for uranium will increase, which is an advantageous position for Cameco and Energy Fuels. Operating three assets, Cameco has an annual production capacity of more than 30 million pounds of uranium concentrates.

Energy Fuels, moreover, represents a larger growth opportunity. A major U.S. uranium producer, Energy Fuels expects finished uranium production of 150,000 to 500,000 pounds in 2024, and has uranium resources across multiple assets equal to approximately 70 million pounds.

On the other hand, NuScale Power is committed to developing innovative nuclear power plants with better safety profiles than traditional plants. Boasting the status of being the only company to have developed a small modular reactor (SMR) approved by the U.S. Nuclear Regulatory Commission (NRC), NuScale Power recognizes a significant market opportunity for its SMRs as the growth of artificial intelligence (AI) imposes enormous energy demands on data centers.

Is it too late to stock your portfolio with these nuclear names?

With President Biden signing the ADVANCE Act, it’s no wonder uranium producers Cameco and Energy Fuels are up today. Similarly, NuScale Power is also well positioned to benefit from the legislation…

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