Company Interview / The stocks David sees going nuclear

Key points:

Positive outlook for uranium driven by global nuclear commitments and carbon-free energy demandCameco shows strong long-term performance but faces recent volatilityNextGen poised as an emerging leader with major new projects on the horizonDeep Yellow (ASX:DYL) and Paladin Energy (ASX:PDN) highlighted among top ASX uranium stocks

David Franklyn from Argonaut Funds Management shares a positive perspective on the uranium sector, highlighting its potential strength heading into 2026. Franklyn points to a spot price of around $76 per pound, with contract prices even higher at $80, indicating supportive market dynamics. Growing global enthusiasm for nuclear power, especially in response to demand for carbon-free energy and power-intensive sectors like AI, is seen as a major driver. Notably, the recent $80 billion joint venture by the US government with Westinghouse – owned by Cameco and Brookfield – is expected to revitalise the sector.

Franklyn singles out Cameco as a key industry leader, referencing its standout performance over the past year. Cameco has advanced by approximately 40% in 12 months, though it has faced recent volatility, dropping 18% over the past month and downgrading its guidance. Its strategic projects in the Athabasca Basin and the Westinghouse reactor build-out are considered major growth catalysts. In contrast, NextGen (ASX:NXG) is described as the sector’s emerging disruptor, with its Rook Arrow project nearing regulatory milestones and anticipated to be a major producer by 2030-31.

On the ASX front, Deep Yellow (ASX:DYL) and Paladin Energy (ASX:PDN) are viewed as attractive plays. Franklyn points to management changes and project developments at Deep Yellow, while Paladin’s recent operational improvements and valuable acquisitions set it apart among local uranium stocks.