AI Winners! Shares of SMA Solar and SUSS MicroTec Are Skyrocketing! RE Royalties Next?

SUSS MicroTec: Price Target Rises, but..

In the case of SUSS MicroTec, the market seems to have already priced in significant optimism following the 185% rally over the past six months. After all, the valuation of EUR 2.36 billion simply does not match the company's operating situation. Analysts at mwb research share this view. While there are clear signs of an operational turnaround, this is not enough to justify buying the stock at its current level. At first glance, the first quarter appeared weak, with revenue of EUR 86.5 million, 31% below the prior-year figure. However, experts point out that this is primarily due to weak order intake from the second and third quarters of 2025. On the other hand, analysts view the stable margin development positively. Despite lower capacity utilization and higher research and development costs, SUSS maintained a relatively stable gross margin of 36.1%. Operating cash flow also performed strongly.

mwb describes the strong order intake as the real highlight of the figures. At EUR 149.3 million, this reached a new record level and was thus well above analysts' expectations. The Advanced Backend Solutions segment performed particularly well, benefiting from high demand for temporary bonding and debonding solutions for HBM capacity expansions in the AI sector. At the same time, analysts also see a broadening demand base outside the AI sector. As a result, the order backlog rose to EUR 330 million and, according to mwb's assessment, ensures high visibility well into 2026 and 2027.

Following revenue of EUR 478 million in 2025, SUSS MicroTec's revenue is expected to rise to around EUR 652 million by 2028. Experts expect EBITDA to more than double from EUR 64.7 million in the previous year to EUR 134.8 million by 2028. Net income is projected to climb from EUR 36.6 million in 2025 to EUR 86.1 million by 2028. From mwb's perspective, the main drivers of this development remain the ongoing AI infrastructure boom, investments in HBM technologies, and broadening demand in the semiconductor market.

Against this backdrop, mwb raised its price target from EUR 70 to EUR 90. However, this is not enough to maintain the "Buy" recommendation, as the SUSS share is already trading at this level.

SMA Solar Steps Up Efforts in Battery Storage

One of the AI beneficiaries is SMA Solar. The company is increasingly evolving from a pure component manufacturer (inverters) into an integrated energy system and solutions provider, where battery storage and energy management software play a central role. A good example of this is the company's latest announcement. According to the announcement, SMA has successfully commissioned a new battery storage system in Metelen, North Rhine-Westphalia, for the asset manager MEAG. With a capacity of 92.5 MW and a storage capacity of 231 MWh, the "Battery Park Metelen" is one of the largest battery storage projects in Germany. Among other things, the system serves to regulate frequency and stabilize the grid. According to SMA, this brings the company's total installed battery storage capacity worldwide to 2 GW, while its project pipeline now exceeds 4.5 GW.

With the handover of the project, MEAG assumes ownership and operational responsibility for the facility, while SMA continues to handle operation and maintenance. The company emphasizes the importance of modern battery storage for the integration of renewable energy and the stabilization of power grids. According to the company, the facility can theoretically store enough electricity to supply approximately 140,000 households for about four hours. Together, the companies aim to implement more projects of this kind. Analysts have also recently put the brakes on the euphoria surrounding SMA Solar. Both DZ Bank and Berenberg recommend holding the stock. In contrast, RE Royalties still appears to be a real bargain.

RE Royalties: Room for Growth in the Energy Boom

RE Royalties presented itself at the IIF digital investor conference as an innovative financing partner for the global energy transition. COO Peter Leighton focused in particular on the company's royalty-based business model. RE Royalties finances renewable energy projects and, in return, receives long-term revenue shares from solar, wind, and storage projects. The company sees itself as a pioneer of this form of financing in the renewable energy sector and points to growing demand for flexible financing solutions for small and medium-sized developers.

Leighton repeatedly emphasized the size of the target market. The global expansion of renewable energy, the rising demand for electricity from AI data centers, and the desire for greater energy security would require enormous investments. In North America alone, this creates a financing need in the billions that traditional banks are often unable to meet. RE Royalties specifically focuses on small and medium-sized projects ranging from approximately USD 10 million to USD 30 million—a segment often neglected by traditional financial institutions. According to management, more than USD 80 million has already been invested in a diversified portfolio since the company's founding. More than 80% of the projects are located in Canada and the US.

Over the past five years, revenue has grown by an average of approximately 60% per year. About 41% of the pipeline now comes from existing clients, which is seen as a sign of long-term partnerships. The company currently has a deal pipeline valued at over CAD 50 million.

Last year, RE Royalties generated CAD 6.2 million in revenue and paid a dividend of CAD 0.04 per share. The stock is currently trading at CAD 0.395, giving the company a market capitalization of approximately CAD 18 million. This translates to a dividend yield of over 10%.

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100% returns in just a few months are not uncommon in the current AI hype. But for companies like SUSS MicroTech and SMA Solar, valuations are getting very ambitious. Shares of RE Royalties, on the other hand, seem anything but expensive. It is really just a matter of time before the stock takes off. The high dividend yield provides a floor for the stock.