Demand trends for energy remain strong, but ultimately it is price that matters – American Atomics, Siemens Energy, and RWE are benefiting!

American Atomics – Here to stay

There are different answers to the world's hunger for electricity. It is well known that green energy alone is not the answer. American Atomics has positioned itself at a critical interface, which makes the stock an exciting investment story.

The paradigm shift toward more low-carbon and base-load nuclear energy is unmistakable. As early as 2024, the long-term contract concluded between US software giant Microsoft and a domestic energy supplier to supply nuclear power for AI data centers demonstrated the viability of new approaches.

Geopolitical tensions and export restrictions are exacerbating the challenges. Russia and Kazakhstan are major players in the uranium market. Analysts at Bank of America are forecasting a uranium price of up to USD 135 per pound in the current year, which would be a significant increase from the current level of USD 80. The Western world urgently needs new deposits and secure supply chains. This is where American Atomics comes into play.

The Canadians are pursuing an integrated "ore to reactor" approach and have set themselves the goal of mapping the entire fuel supply value chain in North America and helping to shape the industry. The approach ranges from exploration and processing to further technological solutions for conversion and enrichment.

The plan is to build a processing plant together with partner CVMR, which is set to set new standards in environmentally friendly refinement. In general, further processing promises higher margins and thus also reduces dependence on the price of uranium. American Atomics also plans to produce the highly enriched fuel HALEU, which is currently difficult to obtain in the West.

The North American region is advantageous as a field of activity for several reasons, as it combines mining history, legal certainty, access to subsidies and investors, and large sales markets. The core of the activities is the flagship Big Indian project, which is located within the historic Lisbon Valley in the US state of Utah. The large property has significant potential due to the previously little-explored area on the east side of the valley. Another advantage is its geographical proximity to a region that has historically supplied 78 million pounds of triuranium dioxide (U₃O₈).

The Company also has two other projects, the Nuvemco project in the US state of Colorado and the Kenora project in the Canadian province of Ontario. Strategy, geography, timing, and size of the addressable market all speak in favor of American Atomics. This is offset only by a market capitalization of CAD 12 million.

Siemens Energy – New all-time high marked

The group's shares were already among the top performers on the German benchmark index in 2025. In the current year, too, the shares seem to be heading in only one direction: upwards. At EUR 136, the shares marked a new all-time high at the end of last week, bringing the Company's valuation to EUR 117 billion.

The Germans are benefiting from important structural and ongoing demand trends in the areas of AI data centers, energy security, and electrification. Most recently, Deutsche's prospects were boosted by the German power plant strategy.

With Siemens Energy's business performing excellently across the board, from gas turbines to grid technology, the group significantly raised its medium-term targets at the end of 2025. In particular, the prospect of an increase in the operating margin to 14-16% by 2028 was well received by the stock market. In addition, the Company launched a EUR 6 billion share buyback program and announced higher dividends.

Despite the good performance in recent months, analysts remain bullish and are increasingly setting price targets between EUR 160 and EUR 170. Experts forecast revenue of over EUR 43 billion and profits of EUR 3.1 billion for the current year. For the following year, experts expect revenue to increase by around 14% and profits to grow disproportionately by almost 40% to EUR 4.3 billion.

RWE – EUR 50 mark exceeded after a long time

Operational successes and the looming breakthrough for new gas-fired power plants in Germany also provided positive momentum for RWE shares. In particular, the national card, the German power plant strategy, could continue to weigh on the shares. The group is planning three locations in Germany with a total capacity of three gigawatts.

However, most analysts consider the stock to be fully valued. Experts expect average revenue to rise to EUR 24.1 billion in 2026, up from EUR 23.2 billion in the previous year. Profits are expected to increase from EUR 1.6 billion to EUR 1.8 billion. The Company is currently valued at just under EUR 37 billion and has a 2026 P/E ratio of 20.

In light of recent developments, these estimates may prove to be too conservative. Analysts at Bank of America and Bankhaus Metzler rate RWE as the big winner of the tender round and have set a price target of EUR 59. With the current jump above the EUR 50 mark, the shares are back at this level for the first time since 2011. There is ample upside potential to reach the price targets set by the experts.

Energy remains an important and central investment theme. Structural demand trends are set, but the responses of the players vary. Siemens and RWE are among the large and established players. Analysts attest to the shares' further upside potential. American Atomics is taking a completely different approach, which undoubtedly has a lot of potential. With its integrated "ore to reactor" approach, the Company can make a significant contribution to fuel supply in North America in the future. Given this potential, the current market capitalization of CAD 12 million is far from reaching its peak.