The Smartest Investors Club
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Smartest Investors Club

Investing

Uranium Stocks Sink as DeepSeek Sparks AI Data Center Energy Concerns

by January 30, 2025
January 30, 2025
Uranium Stocks Sink as DeepSeek Sparks AI Data Center Energy Concerns

The uranium sector took a hit on Monday (January 27) as investors responded to broader concerns stemming from the emergence of DeepSeek, a Chinese artificial intelligence (AI) chatbot.

Cameco (TSX:CCO,NYSE:CCJ), a leading uranium producer, saw its shares fall by as much as 14 percent that day before closing 15.04 percent lower at C$68.26 on the Toronto Stock Exchange.

Its decline followed a widespread selloff across the uranium sector, with peers Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and NexGen Energy (TSX:NXE,NYSE:NXE,ASX:NXG) also experiencing double-digit losses.

Uranium companies have seen support in recent months on the back of energy demand expectations for AI data centers. The International Energy Agency projects they will consume electricity at levels equivalent to Japan by 2026.

Investor sentiment shifted this week on concerns that DeepSeek’s efficiency could disrupt these demand forecasts.

The AI product, reportedly developed at a much lower cost than its western counterparts, has raised questions about the future of American AI dominance and the potential shift in global energy demand tied to data center operations.

TransAlta (TSX:TA,NYSE:TAC), a Canadian utility company, also faced significant losses on Monday, with shares dropping 22 percent at one point and closing down 20.57 percent at C$15.37.

The Calgary-based firm recently announced ongoing discussions with multiple hyperscalers regarding data center developments in Alberta, a move anticipated to align with rising demand for electricity.

Cameco’s downturn also coincided with the news that its partner, Kazatomprom (LSE:KAP,OTC Pink:NATKY), has resumed production at JV Inkai, a uranium mine in which Cameco holds a 40 percent stake, after a brief production halt.

Production at the site, located in Kazakhstan’s Turkestan region, had been suspended since January 1, 2025, due to delays in project documentation approvals from Kazakhstan’s energy ministry.

Cameco expressed disappointment earlier this month when operations were halted unexpectedly. Kazatomprom confirmed on Monday that the approval issue had been resolved and that mining had resumed at Inkai’s block No. 1.

The Kazakh company assured stakeholders that it remains committed to meeting its contractual obligations, citing sufficient uranium inventories to manage deliveries through 2025.

The broader uranium market selloff extended to the Sprott Physical Uranium Trust (TSX:U.U,OTCQX:SRUUF), which functions as a closed-end investment vehicle holding physical uranium assets.

It fell 8.69 percent on Monday, closing at C$15.12. The Sprott trust’s market capitalization currently stands at US$6.14 billion, with its assets primarily consisting of uranium oxide in concentrate and uranium hexafluoride.

Launched in 2021, it has gained attention as a vehicle for investors seeking exposure to uranium.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Grant Williams: Market Turbulence Ahead, but Resource Space Presents “Tremendous Opportunities”
next post
Matthew Piepenburg: Gold, Markets and Debt in 2025 — What to Watch, What to Do

You may also like

Horizon Minerals’ Boorara to Become Australia’s Newest Gold...

Can You Invest in Elon Musk’s Neuralink? (Updated...

Chevron, ExxonMobil and BP Flagged as Major Global...

Altech – CERENERGY Accredited Highest Possible Green Rating

Purepoint Uranium Discovers New Lightning Zone Grading 0.29%...

Positive Start to Dilling at Lo Herma ISR...

5 Top Weekly TSXV Stocks: Tuktu Resources Rises...

Amarc Resources Soars After Major Copper-Gold-Silver Discovery in...

Carbon Done Right

James Henry Anderson: Gold Facing Tectonic Shift, US$2,400...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Trump claims ‘I don’t know her’ and ‘listened to’ RFK Jr about...

    • Rubio just got an additional job in Trump’s administration — and he’s not the only one wearing multiple hats

    • Sycamore Gap: Two men convicted of felling one of UK’s most famous trees

    • Putin, Xi and friendly world leaders celebrate Russia’s Victory Day at Moscow Parade

    • Ellen Miles is planting seeds of hope through guerrilla gardening

    Categories

    • Business (1,633)
    • Investing (4,791)
    • Politics (7,537)
    • World (6,128)
    • Terms & Conditions
    • Privacy Policy
    • About us

    Disclaimer: thesmartestinvestorsclub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 thesmartestinvestorsclub.com | All Rights Reserved


    Back To Top