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Worth Grabbing Onto? This AI Stock Forms Rare, Powerful Pattern And Eyes Entry.
  
Those keen to hop on the artificial intelligence bandwagon have been snapping up stocks such as Nvidia ( NVDA) and Palantir Technologies ( PLTR). But power play Cameco ( CCJ) is an AI stock with a difference that is offering up a fresh entry.
The Canadian company is not an artificial intelligence play in the conventional sense, but it is key to the area in a strategic, infrastructural way.
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?Gen Z’s Blue-Collar Revenge On The AI Era
The data centers that drive the ongoing AI revolution will rely on huge amounts of power, including nuclear. Cameco is key here as it is one of the world's largest producers of uranium.
The firm operates through three segments: uranium, fuel services, and Westinghouse. The latter segment is noteworthy as Cameco partnered with Brookfield Renewable to acquire a stake in the leading nuclear technology and services supplier.
Following the $7.9 billion deal's closure in November 2023, Cameco owns 49% of the firm while Brookfield and its equity partners own 51%. The bulk of Cameco's revenue traditionally came from uranium mining, but it now owns a big slice of a key company that operates in the downstream part of the nuclear fuel cycle.
The stock boasts spotless overall performance, holding a best-possible IBD Composite Rating of 99. It is particularly strong fundamentally, with its Earnings Per Share Rating also coming in at 99.
Per-share earnings have grown by an average 154% over the past three quarters, and gains are accelerating. This is well in excess of the 25% growth rate sought by The IBD Methodology investors.
Further progress is expected, with Wall Street seeing full-year per-share earnings growth of 69% in 2025, before slowing to a still-strong increase of 31% next year.
Wall Street Bullish On Cameco StockAnalysts are bullish on the AI stock. It has a consensus rating of strong buy with an average price target of 87.03, according to TipRanks.
Raymond James analyst Brian MacArthur is bullish on the stock, rating it as outperform with a target of 118 Canadian dollars, which equates to just over $84 in U.S. currency.
"(Cameco) provides investors with lower-risk exposure to the uranium market given its diversification of sources," he said in an Aug. 29 note to clients. "These sources are supported by a portfolio of long-term contracts that provide some downside protection in periods of depressed spot uranium prices, while maintaining optionality to higher uranium prices."
CFRA analyst Daniel Rich rates the stock as a hold with a target of 128 Canadian dollars, or nearly $92 in U.S. currency.
"Rising electricity demand from data centers and AI supports nuclear power growth," he said in a Sept. 27 research note. "Nuclear enjoys broad U.S. bipartisan support with tax credits until 2032."
He also noted the firm recently signed a long-term deal with Slovakia's largest electricity producer. He said the U.S. Russian uranium import ban "positions (Cameco) well given its scale and European sales momentum."
AI Stock AnalysisCameco stock has formed a rare, powerful ascending base, according to Investor's Business Daily's MarketSurge analysis. It is shooting for an ideal buy point of 89.13.
This is a second-stage base, which still counts as early. This is a further good sign as IBD research has found younger patterns are more likely to net good gains for investors.
The relative strength line is just off recent highs. A sharp upward spike here could help fuel a breakout.
Cameco stock ranks among the top 9% of issues in terms of price performance over the past 12 months. It has rallied 64% so far in 2025, which is well in excess of the S&P 500's gain.
Institutions have been adding to their holdings of late, with its Accumulation/Distribution Rating sitting at B-. The lauded Fidelity Contrafund (FCNTX) is among noteworthy holders of the AI stock.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
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