Goldman Sachs sees shares of Uranium Energy surging over the next year as the U.S. government aims to rebuild a domestic nuclear fuel supply chain. Goldman initiated coverage of Uranium Energy on Monday with a stock price target of $13, suggesting more than 30% upside from current levels. The pure-play domestic uranium miner has gained 50% this year with its market capitalization now totaling $4.45 billion. The Trump administration wants to quadruple nuclear power in the U.S. to 400 gigawatts by 2050 and re-establish a domestic uranium supply chain to fuel the nation’s reactors. The U.S. consumes 29% of the world’s uranium supply annually but produced just 700,000 pounds domestically in 2024, according to Goldman. UEC YTD mountain Uranium Energy stock year to date. Uranium Energy is poised to benefit from these policies, according to Goldman. The company aims to become the leading uranium miner in the U.S. with plans to ramp up its production capacity to several million pounds over the medium term. “With nuclear energy demand poised to experience significant growth in the US, we view UEC’s domestic position as key competitive advantage,” analyst Brian Lee told clients in a note. Uranium Energy is poised to benefit from rising uranium prices as global demand dramatically outstrips supply. The uranium market faces a supply deficit of 20 million pounds in 2025, according to Goldman. This shortfall is forecast to grow to 130 million pounds by 2040, or a gaping 40% deficit compared to demand, according to the investment bank. Uranium Energy could also benefit from the U.S. government’s growing willingness to invest directly in resources that are viewed as critical for national security. The Defense Department, for example, recently bought a $400 million stake in rare-earth miner MP Materials . That investment has helped drive a more than 380% gain the stock . “Given the continued push from the US government to establish a nuclear fuel supply chain, we believe there is some potential that a similar arrangement could be concluded within the nuclear fuel supply chain, which we would view as a positive potential future catalyst for UEC,” Lee said.
