ASX uranium stocks are broadly starting the new year with a bang.
What kind of a bang are we talking about?
Well, since the opening bell on 2 January, the All Ordinaries Index (ASX: XAO) has gained a respectable 1.2%.
With that figure in mind, here's how these four ASX uranium companies have performed so far in 2025:
- Boss Energy Ltd (ASX: BOE) shares are up 15.2%
- Paladin Energy Ltd (ASX: PDN) shares are up 12%
- Bannerman Energy Ltd (ASX: BMN) shares are up 26.4%
- Deep Yellow Limited (ASX: DYL) shares are up 18.2%
Boom!
And we're only three trading days into the new year.
Now, I chose these four ASX uranium stocks for a reason.
That's because they were all listed by Guy Keller, a portfolio manager at Tribeca Investment Partners, as having the potential to outperform amid what he calls the "historic run" we're seeing in the nuclear energy sector (courtesy of The Australian Financial Review).
Keller said:
On the ASX, Boss Energy is a key investment for us. We also like Paladin and developers such as Deep Yellow and Bannerman. Once the capital moves down the pecking order, the key to future gains could also be uranium exploration success.
'Stars aligning' for ASX uranium stocks
"The nuclear energy sector, and uranium in particular, is experiencing a historic run. After more than a decade of underinvestment, the stars are aligning for this critical energy source," Keller said.
He noted that the uranium price has been soaring as tech behemoths like Alphabet, Amazon and Microsoft "strike nuclear power deals to meet the rising energy needs of artificial intelligence and data centres".
Keller added that the big run higher for ASX uranium stocks over the past few days has partly been driven by "news of more supply issues from Kazakhstan", which accounts for 40% of global uranium production.
While global supply growth has been slow, Keller said that "new reactor construction led by China and India was adding more demand for uranium to meet growing energy demands".
He noted, "As it is, uranium is the only fuel capable of powering the world's 430 nuclear reactors, which have been providing low-carbon baseload electricity for decades."
Adding in the impact of Western sanctions on Russian nuclear fuel imports, Keller said (quoted by The AFR):
We are confident that supply will remain restricted. A significant portion of viable uranium deposits and current production are in countries with risky geopolitical landscapes.
These market dynamics present a compelling investment opportunity.
And Keller said that ASX uranium stocks like Boss Energy, Paladin, Deep Yellow and Bannerman were still undervalued compared to the miners of other commodities like lithium "despite strong fundamentals and a growing supply deficit" for the nuclear fuel.
According to Keller:
Investors should focus on companies with strong fundamentals and projects in stable jurisdictions. While the uranium sector can be volatile, the long-term outlook remains exceptionally positive…
The ASX uranium names are currently some of the most heavily shorted on the ASX and in our view there is now an asymmetric risk to the upside when the spot price moves higher.
