Jefferies launches nuclear coverage on $55tn capex outlook to 2100

Investing.com -- Jefferies has launched coverage on several nuclear companies, forecasting roughly $55 trillion of nuclear-related capital spending through 2100 as data center power demand, wider electrification and climate stress on aging plants drive a decades-long investment cycle.

The brokerage described the figure as "arguably conservative," pointing to energy needs tied to physical AI, including autonomous vehicles, robotics and drones.

Analyst Laurence Alexander said governments competing in AI will prioritize cheap electricity, which is likely to lower the return hurdle for new investment across the nuclear value chain.

The firm placed buy ratings on integrated miners Cameco and Kazatomprom, developers including NexGen and Denison Mines, and equipment makers BWX Technologies and Mirion, with hold ratings on several others across its new coverage.

For positioning, Jefferies favored producers with scale. "For a long cycle, with frequent fly-ups, we favor the integrated producers (Buy-rated NXE, CCJ, KAP) and global capex (Buy-rated MIR)," Alexander wrote.

The note laid out a near-term supply shortfall for utilities, with conversion economics already at incentive levels, and a long-cycle view that an aging reactor fleet, averaging about 33 years, and 43 in the U.S., will require roughly $9 trillion of investment by 2050 and a further $46 trillion by 2100.

Alexander framed the trade as macro-driven. "WACC is destiny for capital-intensive projects," he wrote, adding that "given the recent derating, we favor leverage to spot prices."

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