On Tuesday, Cameco (CCJ.US), one of the world's largest uranium fuel suppliers and a Canadian uranium mining company, saw its market value surge by over CAD 12 billion (approximately USD 87 billion), with its stock price reaching an all-time high. The rally followed an announcement by its subsidiary Westinghouse Electric regarding an agreement with the U.S. government to construct new nuclear reactors worth at least USD 80 billion. The stock closed up more than 23% in Tuesday's trading session, bringing its year-to-date gains to over 100%.

The U.S. government has urged Westinghouse to build large-scale nuclear reactors to accelerate the nation's adoption of nuclear energy and AI applications, leading to the USD 80 billion deal. Cameco holds a 49% stake in Westinghouse, while Brookfield Asset Management and Brookfield Renewable Partners own the remaining 51%.

Tim Gitzel, CEO of Cameco, stated in a release: "We look forward to this collaboration driving global growth for Westinghouse and Cameco’s nuclear products, services, and technologies." The company’s stock has soared this year even before the latest agreement, fueled by rising electricity demand from AI development, which has increased the need for nuclear energy and uranium supply, tightening availability.

Analysts view the deal as highly favorable for Cameco. JPMorgan analyst Mark Strouse noted in a client report: "Each reactor built requires decades of fuel supply and maintenance services, creating a high-margin, recurring revenue stream for Westinghouse and its owners."

If Westinghouse’s valuation reaches at least USD 30 billion by January 2029, the U.S. government may require an IPO. Cameco acquired its stake in Westinghouse for USD 2.1 billion in 2023.