Europe’s AI Standout Siemens Energy Nears €100 Billion Value

Core Viewpoint - Siemens Energy AG has emerged as Europe's best-performing stock in 2024, recovering from a recent slump and benefiting from strong demand in the energy sector, particularly related to data centers and AI infrastructure [1][4]. Group 1: Stock Performance - Siemens Energy shares have increased by 13% this week, nearing an all-time high, and have fully recovered from a 10% decline the previous week [2]. - The company's market value is approaching €100 billion ($116 billion) [2]. - The stock has surged 320% in 2024, driven by booming demand for data centers, and has climbed another 127% so far this year [4]. Group 2: Analyst Sentiment - Over 20% of analysts have raised their price targets for Siemens Energy following the announcement of a €6 billion share buyback [5]. - Analysts from Berenberg have expressed optimism, stating that despite potential volatility in the data-center theme, earnings growth forecasts and shareholder returns remain positive [6]. - Deutsche Bank analysts have also raised their targets, citing strong demand for gas turbines and data-center equipment, along with restructuring progress at the Gamesa wind turbine unit [7]. Group 3: Market Trends - Global electricity demand is increasing, particularly in markets where Siemens Energy operates, making the stock appealing due to its attractive valuation and strong order backlog [3]. - Siemens Energy is currently the best performer in a UBS basket of European AI stocks for 2025, showing resilience compared to other AI-related stocks [8].