November 7th, 2024 | 07:30 CET
BASF, F3 Uranium, Super Micro Computer – Affordable energy is the key to corporate success
The huge appetite for energy at BASF, particularly for chemical production, must be met, as must the rapidly increasing demand for electricity from data centers using artificial intelligence. Renewable energies cannot yet fully meet this demand, as demand in the field of AI is likely to increase significantly in the coming years. Nuclear energy is an attractive option here, as it provides stable, large quantities of CO2-free energy and could thus efficiently serve both BASF and the increasing demands of AI data centers.
time to read: 4 minutes
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Author:
Armin Schulz
ISIN:
BASF SE NA O.N. | DE000BASF111 , SUPER MICRO COMPUT.DL-_01 | US86800U1043 , F3 URANIUM CORP | CA30336Y1079
Table of contents:
Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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BASF - High energy costs are weighing on the Company
BASF is under pressure due to rising energy costs. These burdens affect not only the chemical giant's production costs but also its competitiveness in the global market. Despite these challenges, the Company is working to increase its efficiency and minimize the impact of high energy prices on its profit margins. High energy prices are a significant contributor to the Company's operating costs, forcing BASF to continuously rethink its strategic priorities.
BASF's sales in the third quarter remained stable, although a slight market uncertainty continues to affect the chemical industry. The Company's EBITDA was 5% higher than the previous year at EUR 1.62 billion. Nevertheless, it was below analysts' expectations. This development is also due to the ongoing pressure from energy prices. Despite economic adversity, BASF continues to implement cost-saving programs to ensure profitability and offset spending in other areas.
To counteract the cost burden, BASF has initiated extensive cost-cutting measures. These include reducing operating expenses and optimizing production processes. By the end of 2026, annual savings of EUR 2.1 billion are to be achieved. Analysts remain cautiously optimistic about BASF's long-term stability as the Company implements innovative solutions to control costs and increase efficiency. BASF's outlook for the rest of the year is for EBITDA of EUR 8 billion, at the lower end of the forecast range. The share is currently trading at EUR 45.12.
F3 Uranium – Uranium is becoming scarce
Amid a growing global demand for energy, the uranium market is gaining importance due to the global reorientation towards nuclear energy. Characterized by increasing efforts to reduce CO2 emissions, F3 Uranium benefits from this trend. Analysts expect a significant increase in demand for uranium, which is focusing attention on innovative technologies such as small modular reactors. These reactors promise efficient manufacturing and installation, which will drive their deployment. F3 Uranium is working on projects in the Athabasca Basin, an area with some of the world's richest uranium deposits, and is strategically positioning itself in the emerging energy market.
F3 Uranium can gain further confidence from its latest Patterson Lake North (PLN) project drill results. The discovery at the JR zone is considered a significant advance, with impressive uranium concentrations. One hole returned 10.5 m of 2.66% U3O8, including a 2.0 m interval at 12% U3O8. Drilling has extended the A1 Shear Zone approximately 400 m to the south. These results highlight the region's high potential and strengthen F3 Uranium's position in the global uranium market. Exploration in the southern part of the JR zone also indicates additional uranium deposits that could provide further growth in the future.
To support this progress, F3 Uranium recently completed a bought deal private placement worth CAD 8 million. The issuance of 20 million flow-through shares at an average price of CAD 0.40 will enable the Company to focus its resources on exploration in the Athabasca Basin. Under Red Cloud Securities's (RCS) leadership, not only has the financial base been strengthened, but investors' confidence in the Company's growth prospects has also been cemented. RCS's target price is CAD 0.60, and analysts at SCP Resource Finance expect CAD 0.75 within the next 12 months. Currently, the stock is trading at CAD 0.235.
Super Micro Computer – Light and shadow
Super Micro Computer, a leading IT infrastructure company, is currently facing significant challenges. Despite impressive revenue figures in Q1 2025, which rose by 181% to up to USD 6 billion thanks to strong demand for AI technologies, there are serious problems. The delay in publishing the annual report due to the resignation of the auditing firm Ernst & Young is fueling uncertainty. Although a special audit committee found no evidence of misconduct, the Company is feverishly searching for a new auditor while potential changes to the results emerge.
Preliminary quarterly figures confirm an increase in profits, driven by innovations such as direct liquid cooling and the use of the world's largest AI supercluster with NVIDIA GPUs. However, revenue slightly missed expectations, partly due to customer anticipation of new NVIDIA chips. Revenue guidance for Q2 is below initial expectations due to this wait. Nevertheless, cash flow remains stable, underlining the Company's financial strength.
Looking ahead, the outlook remains mixed. The Company sees excellent potential for future growth in new products and technologies such as the Blackwell GPU generation. At the same time, the uncertainties in financial reporting and the risk of a temporary Nasdaq suspension are weighing on the share. Super Micro needs to quickly clarify the audit issues and ensure that new technologies are smoothly introduced in order to achieve its long-term growth targets and regain investor confidence. The stock is currently trading at USD 20.0.
Low energy prices are essential for business success. BASF is struggling with high energy costs weighing on its competitiveness and underscoring the need for cost savings. At the same time, growing global energy demand is opening up opportunities for F3 Uranium, benefiting from rising demand for CO2-free nuclear energy. Meanwhile, Super Micro Computer is growing rapidly due to demand for AI technologies, but has to overcome uncertainties in financial reporting. All three companies are navigating the complex balance between energy needs and innovation to maintain success.
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