Siemens Energy gifted away? RENK is betting on AI! First Hydrogen shares rally 100%!

First Hydrogen: More than 100% - what now?

First Hydrogen shares have gained more than 100% in the past four months. Yet, the Canadian company is still valued at under CAD 50 million. So, what is driving the rally for this hydrogen company? The plan: to produce hydrogen using small modular nuclear reactors.

Given the global rise in demand for electricity, particularly due to the boom in energy-hungry AI data centres, nuclear power is once again becoming an option alongside renewable energies. Hydrogen specialist First Hydrogen aims to play an active role in shaping this trend and is focusing on small modular reactors (SMRs). The goal is to use SMRs to produce emission-free hydrogen locally in regions with weak grid infrastructure. With the founding of its subsidiary First Nuclear, the Company is specifically promoting the development of modular nuclear reactors for hydrogen production – a potential turning point in the energy industry.

To remain at the forefront of technology, First Hydrogen is collaborating with the University of Alberta. The collaboration focuses on new reactor designs based on molten salts – a forward-looking material that is considered particularly safe and efficient. The focus is on the scalability of the technology for use in large AI data centers, whose power requirements are increasingly pushing the current grid to its limits. The combination of SMRs and hydrogen production could help meet these new energy requirements in a decentralized, reliable, and climate-neutral way.

With its hydrogen strategy and entry into SMR technology, First Hydrogen is hitting the spirit of the times. Nuclear power is being promoted worldwide, especially in the US, China, and India, and even in the EU it is recognized as a sustainable form of energy, which facilitates the regulatory path for investment. First Hydrogen initially plans to implement local supply solutions in the Montreal–Quebec City region, thereby creating its first zero-emission energy ecosystem. Given a growing global SMR market with an expected volume of around USD 300 billion by 2043, the experts at researchanalyst.com also see First Hydrogen as a promising candidate for investors looking to benefit from the interaction between nuclear power and hydrogen.

Siemens Energy: India subsidiary worth more than the entire Siemens Energy?

Does Siemens Energy have an undiscovered treasure in India that makes its shares look far too cheap? The answer is likely yes and no. Siemens Energy India was listed independently on the Mumbai Stock Exchange as part of the spin-off from Siemens Energy AG. The IPO took place on March 10, 2021, after Siemens spun off its energy segment in India from the Siemens Group. Since then, the Company's market value has developed impressively: As of July 11, 2025, its market capitalization stood at around INR 11.3 trillion, equivalent to approximately EUR 125.6 billion.

In 2024, Siemens Energy India showed significantly more dynamic operating performance than its German parent company. The Indian company increased its revenue by around 57% to approximately EUR 218 million. It achieved an EBITDA margin of around 19%, driven by high demand in the transmission and industry sectors and a strong order book. In comparison, Siemens Energy AG grew more moderately with an increase in revenue of around 20%. However, at EUR 37.5 billion, it generated more than 100 times as much revenue. While the Indian subsidiary is significantly more profitable in terms of margins, it operates on a much smaller scale.

Siemens Energy currently holds around 75% of Siemens Energy India. The German parent company's stake in its Indian subsidiary is thus worth around EUR 94.2 billion – significantly more than the total market capitalization of Siemens Energy, which currently stands at around EUR 73 billion.

These figures reveal a remarkable valuation paradox: in purely mathematical terms, the remaining Siemens Energy business – the global power plant, grid, and wind business – would be valued negatively. In reality, the difference reflects a combination of several effects, such as the valuation premium for Indian growth stocks and a classic holding discount. Nevertheless, it is clear that the market has so far priced the value of the Indian stake hardly at all, if at all, in the parent company's share price.

This presents an interesting opportunity for long-term investors. If Siemens Energy takes measures in the medium term to reveal the hidden value, for example through a partial sale, this is likely to unlock considerable share price potential.

RENK now also focusing on AI

RENK's share price rose by around 10% last week and is marching toward its all-time high of around EUR 85.

Two topics fueled price speculation last week. First, RENK is intensifying its collaboration with ARX Robotics to develop autonomous, AI-supported tank transmissions. This innovative step is intended to strengthen its strategic role in the defense industry of the future. ARX is contributing an AI-based operating system called Mithra OS to the collaboration, which can digitally upgrade existing tanks and convert them into autonomous systems. Together, the partners aim to establish a scalable "software-defined defense mobility" solution – meaning vehicles that are software-controlled, modularly upgradeable, and interoperable. The news was well received by analysts, who see it as an important step toward setting the Company apart from traditional suppliers and winning more orders in the medium term. JPMorgan has raised its target price for RENK shares slightly from EUR 87.50 to EUR 90.

At the same time, RENK is considering selling or spinning off its civilian business units – in particular the plain bearing segment, which is estimated to be worth around EUR 300 million. This would strengthen the focus on the high-margin defense business and free up capital for investments. Such a transaction could reduce the debt ratio and mobilize resources for AI tank projects.

At Siemens Energy, the valuation of the Indian subsidiary should not be overestimated. Nevertheless, it is an interesting side note. First Hydrogen appears to be well-received by investors with its hydrogen nuclear energy strategy. The SMR topic is likely to remain hot on the stock market, and with it, First Hydrogen's share price. Developments at RENK are exciting.