Up more than 1,000%! Siemens Energy and D-Wave! Insider tip First Hydrogen shares jump after announcement!

First Hydrogen: Insider tip in the SMR sector

First Hydrogen should also benefit from this news: In the US, major IT companies are focusing on nuclear energy alongside renewable energy. Google recently agreed to finance at least three new nuclear power projects with Elementl Power, a South Carolina-based developer of nuclear power projects. These projects are intended to help meet the enormous energy needs of ever-growing data centers - including those for artificial intelligence - in a CO2-free manner.

"Google is committed to projects that strengthen the power grids in the regions where we operate, and advanced nuclear technology provides reliable baseload energy around the clock," said Amanda Peterson Corio, global head of data center energy at Google. In addition to the deal with Elementl Power, Google also partnered with Kairos Power. This company is a developer of small modular reactors (SMRs). Amazon, Facebook, and other tech companies also see SMRs as an important building block for the energy supply of the future.

Another insider tip in the SMR market is First Hydrogen. The technology company aims to combine SMRs and hydrogen production. Following the announcement of its plans a few months ago, the first big news came yesterday: a strategic collaboration with the University of Alberta for the technological development of small modular nuclear reactors was announced. The focus will be on fuel reactor materials and optimizing reactor design. Molten salt is seen as the future of nuclear energy as a coolant and nuclear fuel. It offers advantages in terms of safety in the event of overheating, efficiency through adjustment of heat output, and flexibility, as uranium, plutonium, and thorium can be used. The project is being led by Professor Manzoor from the University of Alberta. He is an expert in the thermohydraulic properties of molten salts and head of the Renewable Thermal Laboratory, where work on SMRs is already underway.

Dr. Manzoor commented: "We are delighted to be working with First Hydrogen on research into small modular molten salt reactors. The signing of this letter of support is an important first step toward achieving a series of significant milestones in the advancement of SMR technology in Canada. This industry-led project will provide valuable hands-on experience for students and help train the next generation of engineers and scientists who will contribute to the growth and diversification of Canada's energy sector."

First Hydrogen's stock, also actively traded on Tradegate, responded to the partnership yesterday with a price jump of over 5%. The technology company continues to be valued at less than EUR 100 million, making it appear anything but expensive compared to energy stocks from the US.

D-Wave: Investors still snapping up shares even after 2,000% gains

In addition to artificial intelligence, quantum computing is also a driver for developers of SMRs such as First Hydrogen. D-Wave is increasingly emerging as an investor favorite in the quantum sector. Since October 2024, the stock has exploded by over 2,000%. Within these few months, it had even halved in value at one point. Investors with strong nerves were therefore rewarded. The technology company is now valued at over USD 5 billion.

However, this is not deterring investors from buying, as Friday's price jump of over 10% showed. The stock was driven by news that D-Wave's new Advantage2 quantum computer is now on sale. It is said to be capable of solving problems beyond the capabilities of a classic GPU-based supercomputer. To achieve this, the Advantage2 features a processor with more than 4,400 qubits and improved coherence and connectivity. It is aimed at real-world applications in optimization, materials simulation, and AI and is characterized by a 75% reduction in noise and a 40% increase in energy scale compared to its predecessor, the Advantage system.

Even the announcement of a capital measure did not dampen investors' enthusiasm. D-Wave recently raised USD 95.8 million through the issuance of warrants.

Siemens Energy: Replacing the federal government

Siemens Energy is arguably the German winner of the energy hype. The stock has gained over 1,000% since fall 2023 and is now worth almost EUR 70 billion on the stock market. In fall 2023, the Company was still making negative headlines with the difficulties of its wind energy business, which is bundled in Siemens Gamesa. Insolvency was even considered a possibility. At the time, the German government stepped in with billions in guarantees to support Siemens Energy's project business. These guarantees have now been replaced. Siemens Energy announced that it had replaced the EUR 11 billion guarantee agreement (facility) secured by the German government with a new EUR 9 billion guarantee agreement from a consortium of banks.

Siemens Energy CFO Maria Ferraro commented: "The federal government's counter-guarantee was important in 2023 to secure the expected strong growth in a challenging phase. Thanks to our performance over the past two years and an attractive market environment, we have significantly improved our margins and cash flow and further strengthened our balance sheet. This enabled us to replace the federal guarantee as planned before the end of the fiscal year." In 2023, Siemens Energy had an order backlog of over EUR 100 billion for the first time, which required correspondingly high guarantee commitments. Due to Siemens Energy's risk profile at the time, which was particularly influenced by provisions in the wind business, the banks were not prepared to provide unsecured guarantees.

Around 1.5 years later, there is no longer any sign of financial difficulties. Gamesa's business is now hardly relevant to the share price. Last week's announcement shows where the action is: Energy management company Eaton and Siemens Energy want to jointly accelerate the construction of data centers. The two companies offer integrated, reliable, and off-grid power supply on-site and standardized modular systems in response to the urgent market need for rapidly available data center capacity. The simultaneous construction of data centers and the associated on-site power generation is expected to reduce project time significantly. Grid connection and the integration of renewable energies are also being offered.

At Siemens Energy, much of the good news is likely already priced into the share price, but global energy demand should keep the stock interesting in the future. In contrast, an entry into First Hydrogen at its current low level could offer strong upside potential. If, following the development partnership, a collaboration with a potential customer is also announced, the current valuation would be significantly too low. D-Wave is certainly not cheaply valued, but the stock has a lot of momentum.