Are ASX Uranium Stocks a Buy After Falling up to 10%? Here’s What the AMD Selloff Really Means

ASX uranium stocks fell after AMD shocked the AI trade

ASX uranium stocks took a sharp hit this week after AMD (NASDAQ: AMD) shares plunged 17% when its quarterly guidance failed to match elevated AI growth expectations. The selloff spread quickly, with investors connecting the dots: if AI chip demand slows, fewer data centres get built, less nuclear power is needed, and uranium demand takes a hit. Uranium spot prices slipped to around US$86 per pound after touching US$100 in January. For uranium investors, the reaction highlights just how tightly this sector has become linked to the AI growth narrative, and that creates both opportunity and risk.

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AMD Forecast Miss Triggers Sell-Off in ASX Uranium Stocks

The damage across ASX uranium stocks during Thursday’s session was swift. NexGen Energy (ASX: NXG) closed down 9.1%, Paladin Energy (ASX: PDN) fell 9%, and Deep Yellow (ASX: DYL) slipped 6.3%. Meanwhile, Lotus Resources (ASX: LOT) announced a A$76 million placement at A$2.15 per share, representing a 25% discount to its last traded price of A$2.88. With the funds earmarked for the Kayelekera uranium project ramp-up, the timing means the company is raising capital in the middle of a sector-wide selloff, highlighting the current fragility of investor sentiment.

Some perspective is needed, though. Many of these stocks were up significantly year-to-date before the pullback, so a portion of this move likely reflects healthy profit-taking rather than a fundamental shift. We believe the selloff is more about short-term sentiment than any real change in the uranium supply-demand picture.

What concerns us more is how quickly uranium stocks reacted to news from a semiconductor company. This suggests the market now views uranium largely through the AI data centre lens, making the sector vulnerable to any wobble in the broader AI spending story, even when underlying uranium fundamentals haven’t changed.

Is the AI-Driven Uranium Story Moving Too Fast?

The long-term case for uranium remains strong. Global support for nuclear power is growing, with countries from the US to Japan restarting or extending reactor lifetimes. Meanwhile, uranium supply remains tight, with years of underinvestment in new mines creating a structural deficit that won’t be solved overnight.

The risk, in our view, is timing. The AI-driven nuclear demand story, where tech giants like Microsoft and Amazon sign power agreements with nuclear operators, is real, but actual electricity demand from those deals is likely years away, not months. Investors may have priced in future growth too early.

This doesn’t mean the thesis is broken. It means the market got ahead of itself, and the AMD miss was the trigger for a reality check.

What This Means for Uranium Investors

In our view, this looks more like a healthy pullback within an ongoing bull market than a breakdown of the uranium investment case. The supply pressures that drove uranium from US$50 to US$100 over the past two years haven’t gone away, and the recent drop appears driven by sentiment rather than fundamentals.

For investors considering positions, risk profiles differ across the sector. Established producers like Paladin Energy and Boss Energy (ASX: BOE) offer lower risk given their operating cash flows and existing production. Developers like Deep Yellow and Lotus Resources carry more risk but also more upside if uranium prices hold above US$80 and their projects advance on schedule.

The key takeaway is patience. The AI-nuclear connection is a multi-year story, not a short-term trade. For those with a longer time horizon, we believe tight supply, growing reactor demand, and eventual AI-driven power needs create a compelling backdrop, provided you’re comfortable riding the volatility.