Choosing to hold a stock forever is a rare commitment for any disciplined investor, especially after a massive five-year rally. Investors who have held Cameco (TSX: CCO) stock through its recent five-year rally may have seen the asset significantly appreciate. In a taxable account, that’s a problem. By closing a CCO position with a 578% gain, capital gains taxes may fall due, dragging long-term portfolio performance. Besides the reluctance to fold and take profits, Cameco stock may continue to do well over the next decade, and beyond.
Investors building a retirement portfolio with a multi-decade time horizon may find that selling Cameco stock now to lock in gains might actually be the “riskier” move when considering the massive optionality embedded in the company’s current operating structure.
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Cameco stock: A hold in a heating-up contracts market
While uranium spot prices have recently cooled slightly in February to approximately US$87 per pound from an average price of US$94.28 in January, the long-term contract market tells a much more bullish story. Cameco reports that term prices averaged US$90 per pound in February 2026, signalling that utilities are prioritizing security of long-term supply over uranium cost.
This month’s $2.6 billion supply agreement with India was a bullish highlight. Cameco entered 2026 with a massive backlog of long-term uranium commitments – a portfolio that stabilizes revenue, earnings and cash flow through future commodity price cycles.
This contractual floor provides the stability needed to justify long-term holding, but more shareholder excitement lies in the shift toward nuclear as the indispensable baseload power for the artificial intelligence (AI) era.
AI, SMRs, and the substitution effect a boost for CCO stock
Cameco owns almost the entire nuclear power value chain. It’s uniquely positioned to capture more revenue as it offers a one-stop shop for nuclear power generation design (through Westinghouse), uranium supply, enriched fuel provision, and facility maintenance services.
Nuclear energy for electricity generation has shifted from being a green alternative to a tech-sector lifeline. As AI drives an insatiable demand for 24/7 carbon-free power, tech giants are increasingly looking toward Small Modular Reactors (SMRs) to power data centres. This creates a direct substitution effect where nuclear is beginning to displace oil and LNG in industrial and baseload applications.
The hidden valuation angles: Westinghouse and GLE
The most compelling reason to hold Cameco stock into the 2030s is the off-balance-sheet value of its strategic investments. These include the potential Westinghouse initial public offering (IPO) and the blooming of Global Laser Enrichment (GLE), a previously written-off project that’s fast becoming a growth driver.
1. The Westinghouse IPO potential
Cameco and Brookfield Renewable acquired Westinghouse at a total enterprise value of approximately US$8.2 billion in late 2023, with Cameco’s 49% equity share costing roughly US$2.1 billion. Today, rumours of a potential public listing for Westinghouse are gaining traction following a deal with the U.S. government. A key valuation floor has been set by a U.S. government participation agreement: the government may hold an interest that can trigger a mandatory IPO by 2029 if the valuation reaches or exceeds US$30 billion.
Should Westinghouse go public at a US$30 billion valuation, Cameco’s 49% stake would be worth nearly US$15 billion — potentially rivalling the market capitalization of Cameco’s entire mining business from just a few years ago.
2. Global Laser Enrichment (GLE)
GLE is the ultimate optionality play. Once a written-down asset Cameco fully impaired in 2014, GLE is now morphing into a productive powerhouse. As the exclusive licensee of SILEX laser enrichment technology, GLE is advancing towards construction and production phases. This project offers a low-cost path to re-enriching depleted uranium tails from U.S. government stockpiles, effectively recycling nuclear waste into usable fuel. If successful, Cameco’s option to increase its stake to 75% could translate into a valuable stake in one of the world’s most efficient enrichment businesses.
Investor takeaway
My decision to hold Cameco stock into the next decade goes beyond its uranium mining assets to the conviction of owning the picks and shovels of the entire nuclear fuel cycle at a time the world looks to nuclear power as the most reliable alternative to power an increasingly power-hungry global economy. The ultimate goal is to capture the compounding effect of Cameco’s massive, low-risk infrastructure projects. Selling now would mean missing out on the conversion of these “optionality” assets into cold, hard cash flow.
