S&P/ASX 200 Index (ASX: XJO) uranium stock Boss Energy Ltd (ASX: BOE) could be in the sweet spot.
Boss Energy shares, along with most uranium shares, are leaping higher today following on a nuclear bombshell announcement from Amazon.com Inc (NASDAQ: AMZN). One which synchs nicely with the buy recommendation BW Equities' Tom Bleakley has for Boss Energy shares (courtesy of The Bull).
The Boss Energy share price is up 7.9% in late morning trade on Thursday at $3.69.
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ASX 200 uranium stock tipped for low carbon energy demand growth
"Boss is an Australian based uranium producer," Bleakley said.
And according to the fund manager, the ASX 200 uranium stock looks to be mining the right product at the right time.
Bleakley said:
We're bullish on demand for uranium given it generates low carbon power. The artificial intelligence boom is driving increasing demand for power from data centres. Demand for electric vehicles will also require further investment in baseload low carbon power.
Which brings us back to Amazon.
Half a billion dollars for modular nuclear reactors
As CNBC reports, Amazon Web Services is investing more than US$500 million in nuclear power. The cloud computing company announced plans to construct three small modular nuclear reactors in the United States.
That's good news for this ASX 200 uranium stock, as it comes amid soaring expectations of the energy requirements required to fuel the generative AI revolution, with Amazon and most providers looking for low emissions options to keep the machines running.
Commenting on the news, Matthew Garman, CEO of Amazon Web Services, said:
We see the need for gigawatts of power in the coming years, and there's not going to be enough wind and solar projects to be able to meet the needs, and so nuclear is a great opportunity.
Also, the technology is really advancing to a place with SMRs [small modular reactors] where there's going to be a new technology that's going to be safe and that's going to be easy to manufacture in a much smaller form.
With the world refocusing on nuclear power as a reliable baseload energy source, Boss Energy looks to be well-positioned.
Boss announced the production of its first drum of uranium at Honeymoon in April this year. In July and August, Boss Energy produced 72,516 pounds of uranium.
"We continue to meet or exceed all of our key targets and are comfortably on track to meet our production guidance," Boss Energy managing director Duncan Craib said in early September.
The ASX 200 uranium stock expects Honeymoon will produce at least 850,000 pounds of the nuclear fuel in FY 2025.
The Boss Energy share price remains down 12% over the past full year.
