URA and URNM have fallen roughly 30% from their highs even as AI-driven data centers race toward 12% of U.S. electricity demand by 2028. NLR's nuclear utility holdings, including Constellation Energy and PSEG, capture AI power purchase agreements without depending on uranium spot prices at all. URNM's near-50% concentration in Cameco, NexGen, and physical uranium makes it the highest-beta ETF for investors betting on a sharp spot price recovery.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Uranium equities have given back roughly a third of their value since last year's highs, even as hyperscaler power contracts, small modular reactor announcements, and utility load forecasts continue to point in one direction.
The three funds most investors use to play the theme, Global X Uranium ETF (NYSEARCA:URA), Sprott Uranium Miners ETF (NYSEARCA:URNM), and VanEck Uranium and Nuclear ETF (NYSEARCA:NLR), have all felt the pressure, but the pain has not been evenly distributed. URNM's 52-week range runs from $44 to $65, a peak-to-trough drawdown that lines up with the roughly 30% correction narrative. URA sits at $45 after a 9% bounce over the past week, and NLR trades near $117.
The three funds diverge in construction, and the gap between them is where the investment case lives. The uranium spot price weakened this year as term contracting slowed and a handful of production restarts came online. That happened while the underlying electricity story continued to accelerate.
The Department of Energy projects that data centers will account for up to 12% of U.S. electrical demand by 2028, driven by AI. A single hyperscale facility can pull over a gigawatt of power, equivalent to powering approximately 750,000 homes. Nuclear generation is the one dispatchable, carbon-free source utilities can point to when a hyperscaler asks for round-the-clock baseload.
That structural pull has not disappeared. It is why the equity drawdown looks disconnected from the operating environment, and why the three ETFs below express the theme in very different ways. Global X Uranium is the largest and most liquid uranium ETF, and for most investors, it is the reflex choice.
Extract — continue reading at the source.
