Siemens Energy shares - Sell? BASF and American Atomics in the AI energy boom!

American Atomics: France is also betting on nuclear energy

It is well known that the AI industry will cause energy demand to explode in the coming years. It is also no secret that nuclear energy is a favored source. But something appears to be happening in Europe as well. France has announced that it will once again clearly focus its energy strategy on nuclear power. By 2030, nuclear power production is set to increase, while the share of fossil fuels in the energy mix is to fall from 58% (2023) to 40%. France is already one of the world's largest producers of nuclear power and also exports electricity abroad – including to Germany.

Specifically, the government plans to build six new reactors at existing sites. The first is scheduled to go online in Penly on the English Channel in 2038. At the same time, France intends to continue operating all 57 existing reactors and extend their operating lives to 50 or 60 years in some cases. The state-owned company EDF estimates the cost of the six new reactors at EUR 73 billion. The aim is to agree on a financing and cost framework with the government by the end of March. A final investment decision is expected to follow at the end of 2026, provided Brussels gives its approval by then. The plans are likely to fuel demand for uranium in the coming decades. The Bank of America recently caused a stir with its forecast that the price of uranium could rise by over 50% to USD 135 per pound in the current year alone.

Those who want to profit from the nuclear energy boom could add American Atomics to their portfolio. The company is still in its infancy, but with a market capitalization of less than CAD 12 million, its price potential appears disproportionately high. The Canadian company plans to mine and enrich uranium where it is most needed, in the US. Its activities are based on the Big Indian project in the historic Lisbon Valley district in the US state of Utah. American Atomics is currently developing an area on the eastern side of the district that has hardly been explored to date. The chances of substantial finds are high, as around 78 million pounds of triuranium dioxide (U₃O₈) have already been mined on the western side in the past. An important part of the equity story is that American Atomics will also cover processing up to enrichment. The planned processing plant is set to establish new standards in areas such as environmental protection. To this end, strong partners such as the CVMR Group have been brought on board.

Note: The virtual IIF investor conference will take place next week on February 25, 2026. American Atomics founder Conor Lynch will be presenting live. Register here for free.

https://youtu.be/NZEQ7_2MUgA?si=bqCgZMgPaeaWnJVc

Siemens Energy: -50% possible?

While the share price and the vast majority of price targets for Siemens Energy are rising, mwb research continues to buck the trend. The valuation is simply too high. In the Q1 balance sheet, they see many positives, such as record order intake of EUR 17.6 billion (+34% yoy, book-to-bill 1.82x) and significantly improved profitability at 12%, which supports their earnings and visibility assumptions. In their view, the environment also remains ideal – grid expansion, modernization of the electricity infrastructure, and the AI/data center boom are driving demand. To meet this demand, Siemens Energy is investing EUR 1 billion in the US. mwb also considers the management's forecast to be too low. The analysts are therefore raising the price target to EUR 86. However, the DAX-listed company's share price stands at EUR 162. Hence, the "Sell" recommendation.

So why so negative? The core of the skepticism is not the business, but the price the market is demanding for it. mwb explicitly refers to a "stretched valuation" – meaning a valuation that practically already prices in several years of perfection. Even if the order situation, margin development, and Gamesa turnaround continue, mwb sees the opportunity-risk profile as asymmetrical. The upside potential of the share is limited, while disappointments in project execution or margins, for example, could have a disproportionate impact on the share price.

However, mwb is largely alone in this opinion. Otherwise, there were numerous "Buy" recommendations after the figures were announced. Berenberg is particularly bullish. According to the analysts, the energy technology group impressed not only with its strong revenue and profit performance. The high-order intake shows that growth will continue to be driven forward. The experts, therefore, raised the price target from EUR 130 to EUR 195.

Incidentally, Siemens Energy's share price has already reached JPMorgan's price target of EUR 160 in just a few days. Other price targets from buy recommendations have also already been exceeded. How will analysts react now? Will they withdraw their buy recommendations or raise their price targets within a few days?

BASF invests in India

While Siemens Energy and American Atomics want to profit from the energy boom, it is causing problems for BASF. This is because the long-established company is one of the largest energy consumers in Germany. As a result, high electricity prices are causing it particular problems in Germany. It is well known that the company is investing heavily in China. Now, activities in India are also getting underway.

BASF has announced that it will open a global digital hub in India in the first quarter of 2026. It will be the fourth of its kind for the company, following Ludwigshafen, Madrid, and Kuala Lumpur. Digital hubs are centers from which standardized digital services are delivered on a large scale to BASF's businesses worldwide. The digital hub in Hyderabad, India, will bundle expertise in a cost-effective location and enable services to be provided more quickly and efficiently. So it is not heavy industry that BASF is relocating there. Nevertheless, it can be seen as a sign of where the company is heading.

Overall, BASF's goal with Global Digital Services is to significantly reduce its global workforce by 2030. This also affects jobs in Ludwigshafen, the company itself announced. "The Digital Hub in Hyderabad will be part of BASF's long-standing and successful presence in India, consisting of production and research and development activities in the country. It supports BASF in working faster and more efficiently, and focusing on what creates the most value," said Alexander Gerding, head of BASF Group companies in India.

The energy boom is both an opportunity and a challenge. American Atomics plans to benefit from the sharp rise in demand for uranium and is already benefiting from the political tailwind in North America. The US and Canada have recognized the risk of dependence on fuel imports and are promoting domestic companies – such as American Atomics. Siemens Energy is riding a huge wave of success. At some point, this wave will break. But people were saying the same thing when the share price was at EUR 100. BASF has many problem areas, but perhaps it will turn around like Bayer.