Chevron (CVX +0.06%) stock has been outstanding this year and is currently trading near all-time highs. The stock is up more than 36% year to date. The concern is that most of the good news may already be baked into Chevron's price.
For investors searching for energy exposure with more room to grow, you may want to consider Cameco (CCJ -0.44%) instead.
NYSE: CVX
Key Data Points
Cameco is one of the world's biggest uranium producers. While the second-quarter earnings were a mixed bag, the company maintained its 2026 production guidance and has a near-term growth catalyst in a co-owned reactor maker, Westinghouse.
Westinghouse may IPO soon with a valuation of more than $50 billion. This would put Cameco's 49% stake at $24.5 billion.
Image source: Getty Images.
Demand for uranium is rising due to increased electricity demand from artificial intelligence (AI)-related services. This should continue through at least the next few years as data centers are constructed and come online.
Chevron is near all-time highs, and the stock has become more expensive. Cameco, on the other hand, has decreased more than 4% this year and is well off its 52-week high. Analysts have an average price target of $127, indicating Cameco has significant upside potential. The company also pays a small dividend, but it hasn't missed a payment since it debuted in the public markets in 1991.
NYSE: CCJ
Key Data Points
There's plenty of volatility and execution risk in uranium prices and the Westinghouse IPO. Still, if all goes well, Cameco investors could see significant growth in the medium to long term, largely because of the power needs of artificial intelligence.
I'm especially bullish because Westinghouse's technology powers 57% of the world's nuclear reactors, and it maintains nearly 66% of the world's nuclear fleet. Cameco and its shareholders should benefit tremendously from this investment.
