Shares in the nuclear power sector experienced gains during the morning trading session.

At the time of writing, CNNC INT'L (HKEX: 02302)

had risen by 7.84% to HK$4.95.

CGN MINING (HKEX: 01164)

increased by 7.32% to HK$3.52.

This upward movement follows a strong performance by uranium mining stocks in the US overnight, with Ur-Energy surging over 22% and Cameco gaining more than 7%.

The catalyst for this activity is news that Urenco USA, currently the only commercial uranium enrichment company in production within the United States, announced on Tuesday a multi-billion dollar investment plan.

The investment aims to expand its existing low-enriched uranium production capacity by 50%.

This facility, as the sole commercial enrichment plant currently operating in the US, has an annual capacity of 4.3 million separative work units, which only meets about one-third of the nation's demand.

The surging power requirements from AI data centers are acting as a catalyst for a revival in the nuclear energy industry.

Concurrently, the Trump administration is advocating for a quadrupling of domestic nuclear power plant capacity, a goal that would necessitate a massive increase in uranium fuel production.

Analysts at Huayuan Securities note that against the backdrop of rigidly rising electricity demand from AI, nuclear power and uranium are transitioning from an "alternative energy source" to a "strategic necessity."

This shift is expected to lead to a systematic enhancement in their long-term pricing power, cash flow stability, and capital attractiveness.