We recently published a list of 12 Best Uranium Stocks to Invest in According to Analysts. In this article, we are going to take a look at where NexGen Energy Ltd. (NYSE:NXE) stands against other uranium stocks to invest in.

Nuclear power is making a notable comeback. More than 20 countries pledged to triple nuclear energy by 2050 at the COP28 summit. Nuclear power is considered crucial for lowering emissions, and it is gaining support from both environmental advocates and US national security interests, though for different motivations. Big tech companies are also getting involved as they hunt for more energy to power massive data centers.

Uranium is not presently categorized as a “critical mineral” by the US Geological Survey (USGS) because it is classified as a fuel mineral. However, President Trump is pushing for its inclusion in the list, which would gather federal support and speed up project approvals. This seems like a sensible play on Trump’s part, as demand for uranium is climbing, and the US relies almost entirely on imports, with most of the world’s supply originating from a handful of countries. Uranium prices were at a 16-year high in 2023 and, while they have dipped marginally, they remain higher than at any time since Fukushima in 2011.

In December 2024, John Ciampaglia, CEO of Sprott Asset Management, told CNBC that the uranium industry had been on life support for nearly a decade after Fukushima, and there needed to be better supply discipline in the market. Uranium producers need to ensure that future supply matches demand. He noted that three factors supported the industry – first, the growing electrification in China, India, and other developing countries, secondly, energy security and decarbonization are putting the focus back on nuclear fuel as an energy source, and third, tech companies are now investing in the development of small modular reactors. He also commented on uranium spot and market prices, which are gradually moving upward. He believes uranium prices need to go higher to incentivize chemical producers and miners to increase production and build new mines, which is critical to developing uranium as a reliable electricity fuel in the coming decades.

Current supply shortages, higher long-term prices, and forecasts for record nuclear energy production in 2025 all point to a positive future. With that industry outlook in mind, let’s take a look at the best uranium stocks to buy according to analysts.NexGen Energy Ltd. (NXE): Among the Best Uranium Stocks to Invest in According to Analysts

A miner in a hard hat and apron holding a piece of uranium ore in the Athabasca Basin, Saskatchewan.

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Our Methodology

For this article, we searched credible websites and compiled an extensive list of US-listed uranium stocks. Next, we manually searched for the average upside potential of each stock and selected 12 stocks with the highest values. The list below is ranked in ascending order of the upside potential as of April 19. We have also mentioned the hedge fund sentiment as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

NexGen Energy Ltd. (NYSE:NXE)

Number of Hedge Fund Holders: 37

Average Upside Potential: 104.22%

NexGen Energy Ltd. (NYSE:NXE) is a Canadian company involved in the exploration and development of uranium resources. Its primary project is based in the southwestern part of Saskatchewan’s Athabasca Basin. NXE is one of the best uranium stocks to monitor.

On March 12, Stifel analysts initiated coverage of NexGen Energy Ltd. (NYSE:NXE) with a Buy rating and a price target of C$16. Analysts see NexGen’s Rook 1 as a game-changer, with production levels rivaling Cameco’s. It is set to fill a major uranium supply gap between 2030-2036, especially for US utilities. With strong margins, a prime location, and construction-ready status, Rook 1 is likely to attract M&A interest and command a premium valuation.

In December 2024, NexGen Energy Ltd. (NYSE:NXE) landed its first uranium supply deals with major US nuclear utilities. These contracts are tied to market prices at the time of delivery, which aligns with NexGen’s long-term plan to benefit from future price increases. It is a pivotal moment that highlights the scalability of the Rook 1 project and offers much-needed supply diversity as global uranium sources face growing risks.

According to Insider Monkey’s fourth quarter database, 37 hedge funds were bullish on NexGen Energy Ltd. (NYSE:NXE), compared to 32 funds in the preceding quarter. Bill Ackman’s Pershing Square was the largest stakeholder of the company, with 18.76 million shares worth $1.4 billion.

Overall, NXE ranks 6th among the best uranium stocks to invest in according to analysts. While we acknowledge the potential of NXE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NXE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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