Uranium stocks listed on the Australian Securities Exchange (ASX) are experiencing a second day of selling pressure, driven by investor concerns about the future growth of artificial intelligence (AI) and its potential impact on nuclear power demand. The sell-off reflects fears that a slowdown in the AI sector could diminish the anticipated surge in nuclear energy consumption.
The downturn was triggered on Thursday by a weaker-than-expected sales forecast from Advanced Micro Devices (AMD). This forecast has cast a shadow over the previously optimistic projections for AI technology demand, leading investors to reassess the need for increased nuclear power generation to support energy-intensive data centres. Many investors have been expecting nuclear energy to become a key affordable and reliable power source for AI data centres.
Several major uranium players have been affected by this shift in sentiment. Paladin Energy experienced a decline of 6.4 per cent. Deep Yellow shares dropped more substantially, falling by 10 per cent. Nexgen Energy also felt the impact, with its stock price decreasing by 5.6 per cent.
