January 9th, 2025 | 07:00 CET
Plug Power share price explodes! Golden times ahead for Siemens Energy and F3 Uranium?
The saying "those declared dead live longer" applies to the stock market - and seemingly to Plug Power. The hydrogen stock rose by almost 50% in the first few days of trading, although it has recently struggled to maintain this level. Is this the breakthrough, or is it going down again? Siemens Energy and F3 Uranium could be on the verge of golden times. Both are benefiting from the boom in data centres. In the past few days alone, billion-dollar investments have been announced in the US. To supply energy to the data centres for artificial intelligence, grids and nuclear power plants are needed. However, analyst sentiment is weighing on the price of Siemens Energy. In contrast, F3 Uranium appears ripe for a breakout from the sideways movement, with the potential for its stock to double.
time to read: 4 minutes
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Author:
Fabian Lorenz
ISIN:
PLUG POWER INC. DL-_01 | US72919P2020 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0 , F3 URANIUM CORP | CA30336Y1079
Table of contents:
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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F3 Uranium: Data centres to drive uranium demand
The year begins with announcements of billion-dollar investments in new AI-capable data centers. Microsoft alone plans to invest USD 80 billion in 2025 - half of that in the US. These data centers are intended to train AI models and enable the global deployment of cloud and AI-based applications. A day later, it was reported that Hussain Sajwani, an Emirati billionaire and friend of Donald Trump, plans to build USD 20 billion worth of data centres in the US over the next few years. DAMAC Properties, the real estate company founded by Sajwani, plans to finance data centres across several US states. These announcements are indicative of the unbroken boom in data centres. And where will the energy for their operation come from? In the US and other countries, the trend is towards nuclear energy.
As a result, many experts believe that uranium has a bright future ahead of it. After an exaggeration at the beginning of 2024, the uranium price went into a downward trend. Since December, the price seems to be turning around again. This should also bring uranium stocks back into sharper focus for investors. F3 Uranium is an exciting candidate. The Company holds three uranium properties as part of the PLN project, covering a total area of 42,961 ha in the Athabasca Basin in western Canada. The region is known for its rich uranium deposits, and the necessary infrastructure is in place. The data from the summer drilling program published so far is also positive: uranium grades (U3O8) over lengths of 12 to 15 m with a percentage ranging from 7% to 9.4% at the peak.
Since September 2024, F3 shares have been trading between CAD 0.20 and CAD 0.30 – currently at CAD 0.26. Driven by improved industry sentiment and positive drill results, the breakout could succeed. It could then quickly reach the all-time high of CAD 0.52 from early 2024. The analysts at Red Cloud Securities even see the fair value of F3 Uranium's shares at CAD 0.60, which is 130% above the current level. Important: The Company does not currently need fresh capital. As recently as October 2024, a capital increase was placed at CAD 0.40 per share.
Siemens Energy: Running out of steam in 2025?
At the start of the year, analysts are putting the brakes on the euphoria surrounding Siemens Energy. However, the stock was also the top performer in the DAX in 2024, making a consolidation phase likely and potentially healthy. And that is precisely what seems to be happening right now. The stock lost around 5% of its value yesterday alone. Investors are reacting to negative analyst comments. Bernstein Research, for example, has confirmed its "Underperform" rating. However, the experts have been chasing the share price for quite some time and have now had to raise their price target from EUR 15 to EUR 22. Siemens Energy's shares are currently trading at just over EUR 50. Although Bernstein takes a positive view of Siemens Energy's medium-term targets through 2028, they are particularly concerned about potential setbacks in the wind power division, Gamesa, in the current year.
The day before yesterday, JPMorgan also confirmed its "Neutral" rating. The analysts at the major US bank see Siemens Energy as being on the right track overall. But the stock has already performed well and is fairly valued. JPMorgan's price target for the Siemens Energy stock is EUR 44.
Plug Power: Trend reversal or just a brief twitch?
Plug Power's shares shot up by more than 30% in just a few days of trading before a correction set in on Tuesday. The surge was triggered by a farewell gift from US President Joe Biden for hydrogen. The US Treasury presented the final details for the 45V Production Tax Credit. Among other things, this is intended to set the course for a greener hydrogen future. From JPMorgan's point of view, this move could reignite stalled hydrogen projects, fueling investor hopes that companies like Plug Power might still be able to turn things around.
Specifically, the Treasury's measures address three key pillars of green hydrogen: additionality, timing and deliverability. Projects now have a three-year window to link clean energy sources to hydrogen facilities, aiming to restore planning certainty. In addition, the definitions for clean energy have been expanded and now also include, among other things, selected nuclear reactors. Plug Power had advocated for incentives to reactivate decommissioned nuclear reactors, which now seems to be the case. Perhaps Donald Trump will also like this detail. It is unclear how long the funding will remain under the incoming US president. Trump is considered a friend of oil and nuclear power. If so-called pink hydrogen from nuclear energy were also to be subsidised in the future, this would also speak in favour of uranium and thus the shares of F3 Uranium.
The new stock market year is starting off with volatility. Siemens Energy appears to be in a period of consolidation. In contrast, F3 Uranium seems poised to break out of its sideways movement. Plug Power is likely to continue to fluctuate sharply this year. For a sustainable increase in its stock price, the Company will need major orders and a clear trend toward profitability.
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