Why are ASX uranium stocks like Paladin Energy going gangbusters on Thursday?

Investors are piling into ASX uranium shares today. But why?

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Key points

  • ASX uranium stocks, including Paladin Energy and Boss Energy, are up significantly today.
  • Investor interest is spurred by the US Department of Energy's US$1 billion loan to restart the Three Mile Island nuclear power plant, supported by President Trump to fuel AI data centre growth.
  • The announcement of the US' intention to buy up to 10 new nuclear reactors, potentially funded by Japan, further boosts optimism for ASX uranium stocks.

The All Ordinaries Index (ASX: XAO) is in the green today, with ASX uranium stocks, including Paladin Energy Ltd (ASX: PDN) shares, doing a lot of the heavy lifting.

In morning trade on Thursday, the All Ords is up a welcome 1%.

Here's how these leading ASX uranium stocks are tracking at this same time:

  • Boss Energy Ltd (ASX: BOE) shares are up 4% at $1.70
  • Deep Yellow Limited (ASX: DYL) shares are up 8.1% at $1.73
  • Paladin Energy shares are up 4.5% at $8.36
  • Lotus Resources Limited (ASX: LOT) shares are up 4.6% at 17.3 cents
  • Bannerman Energy Ltd (ASX: BMN) shares are up 5.7% at $3.18

Here's what's spurring ASX investor interest today.

ASX uranium stocks catching US tailwinds

The Aussie uranium miners are catching tailwinds on two fronts today. And both are blowing out of the United States.

First, the US Department of Energy announced that it will loan US$1 billion (AU$1.5 billion) to Constellation Energy to help fund the restart of the Three Mile Island nuclear power plant. That site was home to the worst nuclear accident in the US in 1979 when one of the units suffered a partial meltdown.

In welcome news for ASX uranium stocks like Paladin Energy, however, US President Donald Trump is an adamant supporter of nuclear energy and encourages its use to help power the rapid growth of AI data centres.

Microsoft Corp (NASDAQ: MSFT) has contracted the Three Mile Island nuclear facility to power its own data centre expansions. The plant is scheduled to recommence operations in 2027.

Commenting on what he labelled the "American nuclear renaissance", US Energy Secretary Chris Wright said (quoted by Newsweek):

Constellation's restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region. It will also help ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race.

What other US nuclear news is fuelling investor optimism?

ASX uranium stocks, including Boss Energy, Paladin Energy, and Deep Yellow, are also getting a boost from news that the US intends to buy up to 10 new large-scale nuclear reactors.

In an interesting twist, Bloomberg reports the reactors may be paid for with part of Japan's US$550 billion pledge to fund US projects.

Energy Department chief of staff Carl Coe noted, "The role of having the government involved in private markets is sacrosanct — you just don't do it. But this is a national emergency."

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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