Denison Mines (TSX:DML) Is Up 15.9% After Major US Nuclear Investment and New Industry Alliances—What’s Changed

• In late October 2025, Denison Mines saw increased interest after the US government announced an $80 billion commitment to develop nuclear power through partnerships with leading energy companies, sparking renewed optimism among uranium producers.

• The sector’s momentum has been further supported by the news that Cosa Resources has appointed Denison Mines CEO, David Kitts, as a strategic advisor to advance its collaborative uranium projects in the Athabasca Basin.

• We will examine how U.S. support for nuclear power and expanded industrial cooperation could impact Denison Mines’ investment story.

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Anyone looking at Denison Mines today is in effect weighing the case for uranium as a cornerstone of global clean energy, now with a major tailwind in the wake of the US government’s $80 billion commitment to nuclear power and the sector surge that has followed. The stock’s recent strong rally reflects an increase in optimism, but also raises questions about whether this U.S. boost will translate into lasting demand and project growth for Denison specifically. Short-term catalysts are now more focused on leveraging regulatory approvals at Wheeler River, progress on high-grade discoveries, and deeper partnerships such as the recent Cosa Resources announcement, which could accelerate project timelines. However, Denison’s persistent losses, expensive valuation compared to peers, short cash runway, and insider selling still pose real risks, and not all of them are being pushed aside by supportive market sentiment. A sophisticated sector backdrop can reduce regulatory and market hurdles but does not remove a company’s operational risks or implementation challenges, which should be top of mind for every investor here.

But with the share price well ahead of agreed targets, valuation risks cannot be ignored.

Estimates from nine members of the Simple Wall St community range from less than C$0.05 to C$5.00 per share, showing both optimism and skepticism. This wide range suggests that investors are divided, especially as Denison’s operational risks and strong recent price gains fuel very different expectations about the company’s next chapter.

Explore 9 other fair value estimates for Denison Mines – Why might the share value increase by up to 13% from the current price!

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This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to offer you focused, long-term analysis driven by fundamental data. Note that our analysis may not take into account a company’s most recent price-sensitive announcements or qualitative materials. Simply put, Wall St has no position in any of the stocks mentioned.

Companies discussed in this article include DML.TO.

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