Exchange-traded funds that track uranium miners and nuclear-energy stocks have skyrocketed in October, as major tech companies have tapped into nuclear power to fuel data centers as part of their AI push.
The VanEck Uranium and Nuclear ETF has advanced 13.2% so far in October, on track to score it best month since April 2009. The Global X Uranium ETF is up 14.5% in the same period, with the $4 billion fund on pace to log its best month in over a year, according to FactSet data.
While nuclear-energy ETFs are seeing a heyday, uranium — the heavy metal widely used for nuclear-power generation, has lost some of its luster this month. Uranium’s spot price has risen a modest 2.7% in October to trade at $83.95 per pound as of Thursday afternoon, according to FactSet data.
Mike Kozak, metals and mining analyst at Cantor Fitzgerald, said the cost of uranium tends to be just a small portion of the total cost of operating a nuclear-power facility, so price actions for the metal typically have a limited impact on the nuclear-power industry.
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