Amazon Nuclear Deal: Why Cameco Is the Best Stock to Buy

Amazon just signed a 20-year power purchase agreement with Constellation Energy to buy electricity from the Calvert Cliffs Clean Energy Center in Maryland. This follows a similar 20-year deal between Alphabet's Google and Constellation for nuclear power from 11 facilities across Illinois, Pennsylvania, and New Jersey. These agreements underscore the tech industry's growing commitment to nuclear energy as a reliable, scalable power source for AI data centers.

Constellation Energy, which generates about 80% of the nation's nuclear power, is the obvious counterparty. But its stock has already tripled over the past three years, making it an expensive utility with a low dividend yield. The market has priced in much of the good news.

The real beneficiary, according to the article, is Cameco (CCJ), a leading supplier of uranium-235, the fuel required by most nuclear reactors. Cameco also owns 49% of Westinghouse, which provides equipment and technology to half of the world's nuclear industry.

The World Nuclear Association expects global nuclear power output to triple by 2050, with the ramp-up accelerating after 2030 as dozens of new reactors come online. This creates a long-term demand tailwind for uranium suppliers like Cameco.

While Amazon and Alphabet are not direct investment plays here, their deals signal a broader trend: nuclear energy is back, and the supply chain is where the opportunity lies.

This news matters because it confirms that Big Tech is willing to commit to nuclear power for the long haul. Data centers are energy-hungry, and AI is only making them more so. Nuclear offers a carbon-free, reliable baseload power that renewables alone can't match. By locking in 20-year contracts, Amazon and Alphabet are essentially underwriting the nuclear industry's growth.

For Constellation, the deals provide revenue visibility and validate its nuclear fleet. But the stock's valuation already reflects high expectations. Investors buying CEG today are paying a premium for a utility, with limited dividend income.

For Cameco, the opportunity is more compelling. As nuclear capacity expands, demand for uranium will rise. Cameco is a low-cost producer with exposure to the entire fuel cycle through Westinghouse. The stock trades about 35% below analyst price targets, suggesting significant upside if nuclear growth accelerates.

The deal also highlights a key risk: timing. The nuclear ramp-up won't happen overnight. New reactors take years to build, and uranium demand won't spike until the 2030s. Investors need patience. But for those willing to wait, the runway is enormous.

In the near term, the news could spark more deals between tech companies and nuclear providers, boosting sentiment across the sector. That could lift uranium miners, reactor builders, and related industrials. Cameco, as the largest publicly traded uranium producer, is the purest play.