‘Dont sleep’ on this commodity as AI boom fuels demand

With the artificial intelligence (AI) boom driving up energy demands, uranium—an often overlooked commodity—is standing out and offering investors an opportunity for profitable returns. 

Indeed, uranium has the potential for growth due to its role in nuclear energy, which is known for being steady and clean, making it ideal for supporting the AI sector’s needs.

For investors, this shift is highlighted in uranium-related stocks and exchange-traded funds (ETFs), such as the Global X Uranium ETF (URA).

URA is building a bullish technical setup, breaking out from a bull flag pattern after establishing a double-bottom, according to an analysis shared by TrendSpider in an X post on October 14.

This double-bottom pattern is characterized by two lows at nearly the same price, around $22, and is often interpreted as a reversal signal, suggesting that an uptrend may be on the horizon. 

Additionally, strong buying interest around current levels of $30 further reinforces the ETF’s bullish outlook.

“Don’t sleep on Uranium stocks into 2025. As AI demands more energy, nuclear power is gaining traction as a reliable, clean source,” TrendSpider noted. 

More bullish outlook for URA 

Pseudonymous veteran stock trader specializing in commodities GDXTrader echoed the same long-term optimistic outlook in an X post on October 14. The analyst observed that URA is nearing a crucial resistance zone, with recent price action urging caution for bulls.

In the previous week’s trading session, the analysis indicated that the ETF formed a “hangman” candle—a bearish signal that reflects selling pressure before buyers pushed the price back up. This candle pattern often suggests potential weakness and is now setting up a bearish Harami trend, indicating that the downside momentum may be coming to an end.

In this regard, the broader technical structure points to a bullish outlook in the form of a ‘cup and handle’ formation, often a continuation pattern suggesting further upside, with $36 as the next target.

Will uranium emulate semiconductor stocks? 

Meanwhile, the growing AI industry demands substantial computational power, translating into higher energy requirements. Given its low carbon emissions and high energy output, nuclear energy is viewed by many as a sustainable option to meet this demand.

If AI’s energy demand remains sustainable, it could mirror the growth in the semiconductor sector, where the thirst for faster computations has driven significant growth. In this context, giants like Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) have rallied due to their innovation in chip technology to cater to AI needs.

Overall, it remains to be seen if uranium-related asset classes will rank among the lucrative AI stocks in the coming months.