Nuclear energy is having a moment, and Bank of America thinks the best part hasn't even happened yet. Uranium prices could soar more than 50% over the next couple of years as supply gets tighter, data centers devour more electricity, and governments actually start backing nuclear power like they mean it.

Michael Widmer, Bank of America's metals strategist, is calling for uranium to hit $130 per pound by the fourth quarter of 2026, then climb to $135 in 2027. Those would be levels not seen since 2008, back when uranium last had its moment in the sun. From where prices sit today, that's serious upside.

The Nuclear Renaissance Is Already Underway

Here's the thing: this rally has already started. Since bottoming out in April 2025, uranium and nuclear-related stocks have ripped higher by roughly 168%. Investors are waking up to the reality that in a world hungry for reliable, carbon-free power, nuclear isn't just an option anymore. It's becoming essential.

"Many investors are focused on the long timelines for new reactors and the challenges of new technologies (e.g. SMRs)," Bank of America strategist Jared Woodard noted in a Thursday report.

"This is understandable, but in our view, the bullish case for nuclear power looks stronger than it did a year ago," he added.

The bank also flagged some wild-card scenarios that could push prices even higher. A supply disruption somewhere in Asia? Data center operators panic-buying uranium to lock in baseload power? Either could send prices shooting past even these bullish forecasts.

Meanwhile, the policy winds are shifting dramatically. Nuclear power has quietly become a bipartisan priority in Washington, with energy security suddenly top of mind. The U.S. government recently approved $2.7 billion to support domestic uranium enrichment, a clear signal that America wants to reduce its dependence on foreign supply chains and beef up the entire nuclear fuel ecosystem.

And it's not just the United States. Countries around the world are sending similar signals, treating nuclear not as some temporary bridge fuel but as a permanent fixture in the baseload power mix.

Three ETFs for Uranium Exposure

For investors wanting broad exposure to this uranium rebound, Bank of America highlighted three exchange-traded funds worth considering:

• Global X Uranium ETF (URA): offers a broad mix of miners and developers
• VanEck Uranium & Nuclear Energy ETF (NLR): tilted more toward nuclear utilities
• Sprott Uranium Miners ETF (URNM): focused on pure-play uranium mining companies

Bank of America's Top Nuclear Pick

But if you want to put a finer point on it and own a single stock, Bank of America has one clear favorite for 2026.

That would be Cameco Corp. (CCJ), one of the largest and most strategically important uranium producers on the planet. Bank of America just raised its price target on Cameco to $125 per share after bumping up its valuation multiples to better match what nuclear utility peers are trading at.

Why Cameco? The firm points to its massive scale, smart contract positioning, and direct leverage to rising uranium prices. But there's something else that makes it stand out.

"CCJ is the only large, liquid, U.S. listed vehicle offering exposure to the entire nuclear supply chain (mining, refining, enrichment, fabrication, and reactor technology)," said analyst Lawson Winder, CFA.

"CCJ's diversification is especially important given current market conditions where conversion and enrichment capacity are in short supply," he added.

In other words, Cameco isn't just digging uranium out of the ground. It's involved in nearly every step that turns that uranium into usable nuclear fuel, which matters a lot when certain parts of that supply chain are getting squeezed. That diversification gives Cameco multiple ways to benefit as this market heats up, not just one.

Whether uranium actually hits those lofty price targets remains to be seen, but the fundamental setup looks compelling. Demand is rising, supply is tight, and for the first time in years, the political environment is actually supportive. That's a pretty rare combination in commodity markets.