"Unprecedented surge in electricity demand": Siemens Energy, Nordex, and hidden gem Stallion Uranium stand to benefit!

Stallion Uranium: Newcomer is hottest uranium region

Demand for uranium is expected to skyrocket over the coming years. The World Nuclear Association (WNA) expects reactor demand to more than double from 68,920 tU in 2025 to around 150,000 tU by 2040. And this is only the medium scenario. It could also be over 200,000 tU. Even in the most pessimistic scenario, experts expect an increase to over 100,000 tU. The driver is not only the AI boom and the associated construction or reactivation of nuclear power plants. In Asia, too, there are numerous new constructions and lifetime extensions. This is because outside Germany, the role of nuclear power as a base-load-capable, low-CO₂ source of electricity is valued. The Athabasca Basin in Canada is of strategic importance on the supply side, especially for Western countries. The region is home to some of the world's highest-grade uranium deposits. This is precisely where Stallion Uranium, an explorer still largely unknown in Germany, is active.

The Canadians are unlikely to remain a hidden gem for much longer. The company is currently exploring an area of around 1,700 sq km in the Athabasca Basin. Together with its joint venture partner Atha Energy, it has the largest contiguous project in the western Athabasca Basin, which borders several high-grade discovery areas. The experienced team is using state-of-the-art technology, such as proprietary Haystack TI technology, for the development.

This should soon pay off. The mobilization of an extended high-resolution ground gravity survey in the Coyote target corridor was recently announced. The aim is to expand on the results of the previous ground gravity survey. The planned expansion of ground-based gravity measurements is important for refining existing anomalies. In addition, further target areas are to be identified. Improved spatial definition will also serve as a guide for future exploration decisions. Overall, Stallion sees the potential for multiple uranium systems along the Coyote trend.

Accordingly, investors can expect news flow in the coming months.

Siemens Energy: Investing in the US

While new nuclear power plants are being planned and old ones are being restarted in the US, AI data centers are relying on gas-fired power plants. Siemens Energy is benefiting significantly from this trend. Today, the company will report on the first quarter of the 2025/2026 fiscal year.

Most recently, there have been reports of investments in the US. Siemens Energy plans to invest a total of USD 1 billion in expanding its manufacturing capacity in the US, which is experiencing an AI boom. As part of this, the number of employees is set to increase by 1,500 to 12,000.

Siemens Energy itself reports an unprecedented increase in electricity demand. The rapid expansion of data centers and AI infrastructure, as well as the increasing electrification of new industries, are driving up electricity consumption. To meet this demand, the country must modernize and expand its grid infrastructure while also creating additional generation capacity. The investments are intended to contribute to this effort. Although the main production of turbines will remain in Berlin, a new plant in the US state of Mississippi will manufacture key components for power grids locally in the future. All investments are geared toward efficient and market-driven capacity expansion. The company wants to avoid long-term overcapacity.

Christian Bruch, CEO of Siemens Energy, commented: "Siemens Energy has been manufacturing in the United States for more than a century, and is currently experiencing exceptional growth that is rarely seen. The upswing in US industry and rapid growth in the field of artificial intelligence is driving this development."

Nordex: Target price rises, but rating falls

The surge in what were previously considered boring energy stocks has also reached Nordex. In recent days, however, the stock has lost some momentum on its way up.

The wind turbine manufacturer has made a positive start to the new year in operational terms. It secured several orders in January. All orders come from Europe and have a total capacity of 220 MW. For example, 14 turbines with a capacity of more than 90 MW will be delivered to the UK. Nordex has received orders for 78 MW for new projects and expansions of existing wind farms in Turkey. In addition, starting next year, it will deliver seven turbines with a capacity of around 48 MW for a wind farm in Lithuania. All contracts include multi-year service and maintenance agreements.

Citigroup remains unimpressed. Although analysts raised their target price for Nordex shares from EUR 20 to EUR 37, the stock is currently trading at over EUR 30. The experts therefore downgraded the stock from "Buy" to "Neutral." In their update, the analysts pointed out that their estimates are above the consensus. So it appears that quite a bit has already been priced in.

Energy stocks will continue to electrify investors this year. It may be worth taking a closer look at the newcomers. These include Stallion Uranium. The company is still a hidden gem and is active in a proven uranium region. Siemens Energy is likely to remain a core investment in the sector. However, the company is anything but cheap, and a lot of growth is already priced in. The latter also applies to Nordex. And the past has shown that the industry can quickly face headwinds.