Uranium miner Cameco (TSX:CCO) entered 2026 with strong upside momentum. The stock is up more than 40% year-to-date, capping a stunning 150% gain over the past 12 months. For long-term shareholders who have ridden the massive 400% three-year rally, the temptation to take profits on Cameco stock is naturally overwhelming.
However, Cameco’s performance triggers a classic dilemma. Investors currently on the sidelines fear buying at the top, while current holders worry about leaving money on the table. A deeper look at the fundamental landscape suggests that while the easy money has been made, the smart money is positioning for a second phase of growth.
Here is why the outlook for Cameco stock remains bullish for 2026.
Cameco stock and the AI power pivot
The investment thesis for Cameco is fundamentally shifting. Throughout 2024 and 2025, the story was primarily about a supply deficit and rising spot prices. While that remains relevant, with uranium contract prices averaging US$86.50 in December 2025 and climbing toward the US$90 highs last seen in 2008, the year 2026 marks the beginning of a new chapter defined by the convergence of nuclear energy and Artificial Intelligence (AI).
Hyperscalers like Microsoft and Alphabet (Google) have realized that renewable sources like wind and solar can’t reliably provide the 24/7 baseload power required to run massive AI data centers. Nuclear power is rising as the carbon-free energy source capable of meeting this demand. Cameco’s involvement in modular reactor technologies appears attractive in the new economy.
With the U.S. government pledging billions in support to strengthen the local nuclear industry, Cameco’s business empire is also evolving. It’s no longer just a commodity uranium miner; it’s becoming a critical infrastructure partner for the global technology economy. This structural shift creates a price floor for Cameco stock that did not exist in previous commodity cycles.
The Westinghouse revenue safety net
Beyond the mines, Cameco’s business model was altered by its US$2.2 billion acquisition of a 49% stake in Westinghouse Electric in 2023. This asset has transformed the company’s risk profile.
While mining revenue is inherently volatile, Westinghouse operates as a steady, utility-like service provider. It generates recurring revenue from nuclear plant maintenance and fuel manufacturing regardless of where the uranium spot price moves. This segment provides a vital cash flow buffer, making the stock significantly less risky than it was during the last uranium boom.
Furthermore, an October 2025 deal involving the U.S. government, Brookfield Asset Management, and Cameco suggests that the nuclear services giant could be separately listed. Estimates place a potential valuation at $30 billion or more by 2030. This would represent a significant investment gain for Cameco and Brookfield, who originally acquired the business for roughly US$4.5 billion.
Cameco’s hidden “free option”: Global Laser Enrichment
Perhaps the most intriguing catalyst for 2026 is an asset many investors have forgotten: Global Laser Enrichment (GLE).
Cameco wrote off this project in 2014 when uranium prices plummeted, but with the market roaring back, GLE is moving from the laboratory to the real world. The technology promises to re-enrich depleted uranium tails into usable fuel, essentially producing low-cost uranium from waste.
In January 2026, GLE was selected by the U.S. Department of Energy (DOE) for a funding award to support domestic laser enrichment. A successful third-party validation of readiness in October 2025 significantly de-risked Cameco’s 49% stake. With commercial production targeted for 2030, the market is currently assigning very little value to this “zombie” asset. This effectively gives shareholders a “free option” on what could become a massive multi-million dollar revenue generator by the end of the decade.
Is Cameco stock overvalued?
The primary hesitation for any rational investor is valuation. Cameco stock is undeniably expensive, trading at a historical P/E of 150. Even with a strong earnings outlook, the forward P/E drops to 92, which is still high.
However, context is everything. Cameco’s multiples are now closer to high-flying tech stocks than traditional resource companies, but this may be justified. The company has its hands in several aspects of the nuclear fuel cycle today – a roaring industry. Analysts project earnings growth of roughly 40% for 2026.
New Cameco stock investors in 2026 are paying a premium price to buy a premium company growing its bottom line faster than almost every large cap stock on the TSX. As the nuclear renaissance accelerates, Cameco’s unique energy sector position likely supports its premium valuation.
