How Trump’s executive orders caused a spike in share prices for uranium companies

In the last week, uranium-focused equities ETFs witnessed increased interest from retail and institutional investors alike.

But why is there all this interest, and why now? The answer, as is with many answers these days, is US President Donald Trump.

What’s happened?

Last week, President Trump signed four new executive orders, aimed at rapidly expanding America’s nuclear energy capabilities. The long-term ambition? To quadruple the country’s nuclear capacity by 2050.

According to Flash Update research notes from both Citi Research and Canaccord Genuity^[1], achieving that goal would require the US’ amount of annual uranium demand to double from current levels^[2].

The four executive orders are aimed at kick-starting the following initiatives:

• Federal funding and loan guarantees to help construct 10 new large reactors by 2030 and the upgrade of existing nuclear reactors^[3]
• Developing and deploying Small Modular Reactors (SMRs)^[4]
• Removing regulatory barriers, especially the time taken to review an application to build a new nuclear plant^[5]
• Boosting US uranium production and enrichment capabilities as well as expanding the nuclear energy workforce^[6].

These orders seek to slash red tape and accelerate the approval process for new nuclear reactors and power plants. It also marks a significant shift in how quickly nuclear projects can get off the ground^[7].

The executive orders follow the passing of Trump’s so-called “Big Beautiful Bill”, which eliminates tax credits for most clean energy projects. Nuclear, however, is the exception, with companies in the sector still eligible for production tax credits on projects that start construction by 2031.

Not just a pipe dream anymore

What sets these new orders apart is that they go beyond lofty long-term goals – they include concrete near-term actions. Citi’s Flash Update research note says these will range from upgrades to the existing nuclear fleet and major reforms to fast-track government approvals to plans for 10 new reactors to break ground by 2030^[8].

From a political point of view, China and India have long planned a significant build out of their nuclear power fleet. With the US taking concrete steps to join them, the structurally constrained market for uranium is set to get tighter.

From an investment point of view, the prospect of further construction of nuclear power stations in the US has helped to boost uranium stocks and related ETFs.

It’s been a volatile time to be a uranium investor

Calling uranium a volatile investment might be an understatement.

As demand for AI – and the energy-hungry data centres that power it – surged, so too did initial expectations for the uranium needed to fuel it. That optimism pushed uranium demand forecasts, and the share prices of uranium-focused companies, higher.

But when DeepSeek’s AI model emerged earlier this year, reportedly using far less electricity, those expectations were quickly revised. Uranium mining stocks, which had been seen as key to powering the AI boom, came under pressure.

Some of this pressure can be seen in the chart below. Locally, Boss Energy (ASX: BOE), Paladin Energy (ASX: PDN), and Deep Yellow (ASX: DYL) have ranked among the most heavily shorted stocks on the ASX for most of the last 18 months (to 3 June 2025)^[9].

Stock prices of global companies in the uranium industry (27 May 2020 – 28 May 2025)

Nonetheless, a significant build out of nuclear power stations in emerging market countries like China and India, as well as structurally constrained supply, may still provide a long-term tailwind for the uranium sector.

President Trump’s rollback of green energy subsidies associated with the Inflation Reduction Act, and the pivot to nuclear, has jolted the uranium market back into gear. The announcements also created a scramble of short sellers trying to unwind their positions in these uranium miners – which has helped cause the renewed interest in uranium equities and uranium-related ETFs.

Nuclear is no longer a nice-to-have

The demand surge is primarily driven by data centres that require massive energy to power the AI boom, and nuclear energy is an attractive option for big tech firms given its reliability and near-zero carbon footprint.

But long before AI was part of our daily lexicon, the demand-supply imbalance for uranium was already clear.

According to the International Atomic Energy Agency (IAEA), uranium production volumes have been significantly below world uranium requirements for some time. In fact, in 2022, OECD member countries only produced around 30% of the uranium they required. And, as of 2023, only one country (Canada) produced enough uranium to meet its nuclear generating capacity^[10].

OECD and World Uranium Production vs Requirements

Further, in the executive order entitled Deploying advanced nuclear reactor technologies for national security, Trump explicitly characterised AI data centres as “critical defence facilities” four times in the press release. In other words, nuclear may no longer be a ‘nice to have’. It could now be a necessity for the world and a national security priority for the US.

The uranium companies trade in one ETF

Given the structural tailwinds, investing in companies in the uranium industry could be considered by investors who sees this thematic lasting for the long term. The Betashares Global Uranium ETF (ASX: URNM) gives Australian investors access to many of the biggest global uranium miners, as well as other companies in the global uranium industry.

URNM was the first uranium-focused equities ETF to be traded on the ASX and is also accessible through Betashares Direct. It provides exposure to leading global companies involved in the mining, exploration, development and production of uranium, modern nuclear energy or those that hold physical uranium or uranium royalties.

Some of the companies currently in the fund’s portfolio include Cameco and Kazatomprom, as well as Australian firms Boss Energy (ASX: BOE) and Nexgen Energy (ASX: NXG)^[11]. 

Part of URNM is also invested in the Sprott Physical Uranium Trust, which gives investors some exposure to the spot uranium price itself.

It’s worth noting that uranium stocks are generally volatile in nature. Investors should therefore appropriately size their portfolio positions in the sector and take a long-term view. Attempting to time the market or make concentrated investments in uranium stocks may carry big risks, especially for individual investors.

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