AI Boom Meets Grid Bottleneck: NU E Power, Nordex and Super Micro in Focus

NU E Power: The Problem Solver

The company develops energy parks specifically for AI data centres and power-hungry industries. With a model based on developing, selling, and reinvesting, NU E focuses on an early and lucrative stage of the value chain. The Canadian company identifies sites, secures usage rights, and drives the permitting and grid connection processes to bring projects to construction-ready status and thus profit from their appreciation in value.

Currently, the development pipeline in Alberta, Canada, and Mongolia totals 1,112.25 MW gross, with a net capacity of 613.94 MW. In Alberta, projects within AESO Cluster 3 are planned to generate 503.5 MWac gross, equivalent to 251.75 MWac net, with 50% economically attributable to NU E Power.

Feasibility and environmental studies are underway at the Darkhan Energy Park in Mongolia. The project remains in a highly speculative, stage-gated phase with no binding agreements currently in place for construction, financing, or power sales. For Lethbridge 2, a non-binding letter of intent also covers a potential power purchase and infrastructure partnership of up to 17 MW. While the initial review phase has been completed in Lethbridge and the site reservation has been extended in Hanna, the Hays project would represent the company's first wholly owned acquisition in Canada. A corresponding non-binding letter of intent calls for approximately 145 MWac of solar capacity paired with a 61.5 MW / 123 MWh battery energy storage system (BESS). To date, the company's equity stakes in Alberta have ranged between 25% and 50%. Completion of the Hays acquisition remains subject to seven conditions precedent. The project currently has no executed interconnection agreement, power purchase agreement or other offtake arrangement in place.

A recently completed private placement raised gross proceeds of CAD 3.86 million, exceeding the initial target of CAD 3 million. This provides the company with additional financial flexibility to advance growth initiatives within its niche. In its second-quarter filing, the company noted that additional financing will be required to fund ongoing operations and development activities.

Super Micro: A Simple Formula - AI Boom = Billions in Revenue

The company develops and manufactures server, storage, and data centre solutions that are used primarily for AI applications and data-intensive data centres. Demand is enormous. This is evidenced by the fourth-quarter figures released in mid-August, as well as the results for the fiscal year ended June 30.

According to these figures, revenue in 2026 rose by 77% to USD 39.1 billion, accompanied by a slight improvement in margins. The bottom line was a profit of USD 2.5 billion, or EPS of USD 3.63, up from USD 2.06 in the prior year. The figures for the final quarter demonstrate a significant acceleration in growth momentum and enormous operational leverage. While revenue in Q4 grew by 91% year-over-year, earnings per share soared by a staggering 422% to USD 1.62.

New orders in the past fiscal year totalled more than USD 60 billion, allowing the company to start the new fiscal year with a record order backlog. Super Micro has projected a revenue range of USD 65 billion to USD 72 billion for the new fiscal year and plans to increase its share of enterprise customers as well as drive wider adoption of its proprietary DCBBS architecture, which is expected to improve profitability. Data Centre Building Block Solutions (DCBBS) are preconfigured, modular data centre solutions.

At the same time, Super Micro continues to invest in technology and manufacturing capacity. Analysts have set an average price target that is roughly 20% above the current level of USD 37. The US-based company currently has a market capitalization of USD 24 billion and posts moderate P/E ratios of 9.4 and 7.6 for the current and upcoming fiscal years, respectively.

Nordex: Potential for a Surprise?

The company develops, manufactures, and installs onshore wind turbines. Long-term maintenance contracts supplement the project business with recurring revenue. In the second quarter, Nordex increased its revenue by 16.3% to EUR 2.18 million. Operating profit (EBITDA) rose at a disproportionately high rate, doubling to just under EUR 224 million, which corresponded to a significant margin expansion from 5.8% to 10.3%. Also worth highlighting is the positive development of free cash flow, which totalled EUR 165 million. With an order backlog of EUR 18.4 billion, including the service business, Nordex has a broad and well-defined growth base.

Recently, Bank of America's (BofA) "Buy" recommendation boosted the share price. BofA analysts point to dynamic growth in Germany and a picking-up US business. They believe the company could deliver a positive earnings surprise and even raise its medium-term margin targets. The latest company announcements confirm this impression.

Analysts estimate the price target at EUR 54, which, given a current price of EUR 39 and a market capitalization of around EUR 9 billion, corresponds to an upside of just under 40%.

NU E Power operates in an area where the expansion of AI and industrial activity is constrained by available power supply. Its business model focuses on advancing projects through defined development stages before pursuing potential transactions. Meanwhile, Super Micro is generating billions in revenue from its AI-related business, while Nordex is expanding its power-generation activities alongside a substantial order backlog.