The uranium sector is emerging as a structurally attractive opportunity for long-term investors. Despite recent price volatility, the broader outlook for uranium is underpinned by growing global demand for nuclear energy, the rise of Small Modular Reactors (SMRs), and the increasing energy needs of AI-driven data centres.
At GP Wealth, we’ve been gradually increasing uranium exposure in client portfolios over the past 12 months. We believe the current market environment presents an asymmetric risk-return profile—with limited downside and strong upside potential over the medium to long term.
Uranium Market Outlook: Volatility in the Short Term, Growth in the Long Term
Spot and Term Prices
Uranium spot prices have pulled back ~30% from their highs and currently trade around USD $65–70/lb, impacted by short-term oversupply.
The term uranium market remains stable, with long-term contracts exceeding USD $80/lb, reflecting sustained confidence from utilities and producers.
Uranium equities have underperformed in 2024, despite strong sector fundamentals—highlighting a possible entry point for strategic investors.
According to UBS forecasts, uranium markets will experience moderate deficits through to 2030, potentially shifting into surplus between 2030–2033. However, from 2033 onwards, demand is expected to exceed supply again—driven by global decarbonisation and electrification efforts.
Source: UBS, 2025
Key Drivers of Long-Term Uranium Demand
1. Nuclear Energy Expansion
Over 440 nuclear reactors are currently operational worldwide, with 65 under construction, adding over 70 GWe of new capacity.
More than 60 reactors are set for lifespan extensions within the next five years.
Nuclear energy is gaining global support as a zero-emissions, base-load power source from governments in the US, UK, Canada, India, and beyond.
Source: UBS, 2025
2. Growth of Small Modular Reactors (SMRs)
SMRs offer clean, scalable, and cost-efficient nuclear power solutions. Tech leaders like Microsoft and Google are already backing SMR adoption to power energy-intensive operations.
By 2035, SMRs could generate up to 24 million pounds of incremental uranium demand per year.
3. AI-Powered Data Centres
The rapid adoption of artificial intelligence (AI) is dramatically increasing global power consumption. AI data centres demand consistent base-load power—creating an unexpected tailwind for nuclear energy and uranium demand.
How to Invest in Uranium in Australia
1. Direct ASX-Listed Uranium Stocks
Paladin Energy (PDN) and Boss Energy (BOE) are two of the most advanced Australian-listed uranium producers.
Both firms offer high operational leverage to uranium prices, strong project pipelines, and solid balance sheets.
Suitable for investors seeking direct, high-conviction exposure to uranium.
2. Diversified Exposure via Uranium ETF (URNM.ASX)
For a broader approach, the Global X Uranium ETF (URNM.ASX) offers diversified exposure to global uranium miners, developers, and physical uranium holdings. This ETF reduces single-stock risk while maintaining thematic upside as the uranium cycle unfolds.
Final Thoughts on Uranium as an Investment Strategy
Uranium is uniquely positioned to benefit from several long-term macro themes, including energy security, climate transition, and AI-driven power demand. While short-term volatility persists, the structural growth narrative remains strong.
At GP Wealth, we believe uranium exposure can complement a diversified portfolio, particularly for those with a medium to long-term horizon.
Interested in Adding Uranium Exposure to Your Portfolio?
Speak with your GP Wealth adviser today to explore investment options tailored to your goals.