Shares of Cameco (CCJ -1.16%) are moving up on Tuesday. The company's stock had moved up 2.8% as of 2:26 p.m. ET, but was up as much as 4.8% earlier in the day. The movement comes as the S&P 500 (^GSPC -0.00%) and the Nasdaq Composite (^IXIC 0.31%) gained 0.4% and 0.6%, respectively.
Uranium giant Cameco saw a boost after a major deal was announced between Meta Platforms and Constellation Energy that led to nuclear stocks across the industry spiking.
More power for Meta Platforms
The parent company of Facebook and Instagram announced it has signed a 20-year agreement with Constellation to purchase roughly 1.1 gigawatts of energy from Constellation's Clinton Clean Energy Center in Illinois -- the entire output from the site's nuclear reactor.
The deal is more evidence of big tech's newfound interest in nuclear energy. Tech companies are finding current options insufficient to power the massive data centers that power today's exceptionally power-hungry artificial intelligence (AI) models. Nuclear energy offers a reliable power source for the demands of AI.
Image source: Getty Images.
Cameco will benefit
Cameco, the largest provider of uranium in the world -- the material that fuels nuclear reactors -- will benefit from this deal and any like it in the future. It is clear that as the AI arms race continues, demand for power will only grow, and as attitudes toward the controversial energy source soften, demand for uranium will grow as well.
As the largest player in the space, Cameco is a solid addition to a well-diversified portfolio for investors who want exposure to uranium stocks.
