On Tuesday, Alphabet’s (GOOG) Google signed a 20-year deal with Constellation Energy (CEG) to add 890 megawatts of new nuclear power to the largest electric grid in the U.S.

That’s roughly the output of a large new nuclear reactor.

To deliver it, Constellation will invest more than $4.3 billion upgrading 11 of its reactors, with the first new power arriving as soon as 2028. Constellation shares rose more than 12% on the news.

But the biggest takeaway has little to do with Constellation…

Simply put, this deal is a major tailwind for uranium stocks, which have gotten crushed.

Let’s break down what Google actually signed… why the 20-year term matters so much… and how investors should play it.

What Google actually signed

The 890 megawatts will come from “uprates”—i.e., newer, more efficient equipment—so a reactor that’s already licensed and connected to the grid can produce more electricity.

That matters because it skips the hardest parts of building new power: finding a site and waiting years in line to connect to the grid.

Google also signed a separate 15-year deal for another 2,700 megawatts of electricity from Constellation’s existing power-generation fleet. All of it runs through PJM, the grid operator covering 13 states and Washington, D.C.

Simply put, Google is paying to squeeze more power out of plants already running… because it can’t afford to wait for new ones.

And it isn’t alone. Just six days earlier, Constellation signed a 20-year deal with Amazon (AMZN) to support expanding its Calvert Cliffs plant in Maryland. Microsoft (MSFT) signed its own 20-year deal in 2024 to restart a reactor at Three Mile Island.

Every one of those reactors needs fuel… and that fuel has to come from uranium miners.

Simply put, as utilities make longer-term commitments to nuclear power, they need to secure reliable uranium supplies.

And these deals span decades. That creates a long-term tailwind for uranium suppliers across the board. 

The uranium disconnect—and how to play it

While uranium prices have rebounded, stocks are lagging. The long-term uranium price recently hit a record $96 a pound, topping its 2007 high.

Yet Cameco (CCJ), one of the world’s largest uranium producers, still trades well below its 52-week high of $135.

Uranium Energy (UEC) is an even starker example. The stock has traded between $8.91 and $20.34 over the past year, and it now sits near the bottom of that range.

That’s despite UEC’s underlying operations continuing to improve. According to UEC’s September 29 earnings release, Q4 production rose 157% sequentially, total production cost per pound fell 33%, and the company reported $753 million in liquid assets and no debt.

In other words, the commodity is gaining strength… but the stocks aren’t priced to reflect that.

It’s important to note that the uranium sector is highly cyclical. These stocks can swing wildly, even when the long-term fundamentals look strong. The best way to trade them is to buy when stocks are being annihilated, and sell after a huge run.

And with some of the best uranium names, like Uranium Energy and Cameco, trading well off their highs, it’s a good time to start picking up shares. Both companies stand to benefit if growing demand for nuclear energy translates into stronger uranium contracts and prices.

The bottom line

Google just committed to buying nuclear power for the next 20 years.

That tells you how badly Big Tech needs reliable power… and how long it expects that need to last.

Long-term uranium prices have already responded, but uranium stocks haven’t… 

And that disconnect could create an opportunity for investors willing to ride out the sector’s volatility.

For more on how to play the nuclear power trade, including the uranium names Frank is watching, stay tuned to Wall Street Unplugged.