Siemens Energy and Infineon Forge Silicon Carbide Pact as Data Center Orders Hit 5 Gigawatts

Siemens Energy is sharpening its technological edge for the data center boom by tapping Infineon’s silicon carbide power modules for a new generation of electrical protection systems. The partnership targets a critical vulnerability in AI facilities: power interruptions that must be cut in microseconds — roughly a thousand times faster than conventional gear — to avoid crippling downtime in direct-current networks. The announcement lifted Siemens Energy shares by over 2% on Monday to €158.92, signaling investor enthusiasm for the hardware alliance.

The cooperation dovetails with already surging demand from cloud and AI operators. At the Datacloud Global Congress in Cannes, Siemens Energy revealed it booked orders for 5 gigawatts of capacity from the data center segment in the second quarter alone. That firepower now accounts for a quarter of all Gas Services orders, and the company’s total backlog has swelled to €154 billion. Goldman Sachs points to this structural shift as a long-term valuation anchor, while the broader numbers underscore the scale: data centers could gobble up 4% of the world’s electricity by 2030.

Regulatory tailwinds on both sides of the Atlantic are amplifying the opportunity. In Brussels, the European Commission’s proposed “Cloud and AI Development Act” aims to triple continental data center capacity within five to seven years, accelerated by fast-track zoning. Across the pond, new U.S. grid standards (NERC PRC-029) will force wind, solar and battery operators to meet stricter stability requirements from October 1, 2026 — a rule Siemens Energy helped shape. The Grid Technologies division is already benefiting: its book-to-bill ratio stands at a robust 1.72, meaning new orders are outpacing output by a wide margin.

Should investors sell immediately? Or is it worth buying Siemens Energy?

Bank of America reiterated its buy recommendation on Monday, arguing that the market continues to underestimate profit growth in the grid business. Analysts see a massive global investment wave driven by the energy transition and the artificial intelligence buildout. The average price target among 25 experts surveyed stands at €195.08, suggesting significant upside even after the recent turbulence.

That turbulence has been sharp. The stock has shed roughly 19% from its April high of €195.54, and a four-week slide of nearly 13% dragged it to €155.70 before Monday’s bounce. The relative strength index dipped to 37 (technically oversold) and has since recovered to a neutral 41. The 200-day moving average at around €135 — roughly 15% below the current price — marks the long-term uptrend.

Management is using the pullback to buy back stock. A €1 billion repurchase program runs through September 2026, with a larger tranche already penciled in for subsequent years. On the operational front, Siemens Energy targets revenue growth of 14% to 16% for the current fiscal year. Whether that top-line expansion translates into margins — and whether the backlog can be converted at favorable rates — will be the key test for investors watching the silicon carbide switch and the data center wave converge.

Ad

Siemens Energy Stock: New Analysis - 8 June

Fresh Siemens Energy information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Siemens Energy analysis...

en | DE000ENER6Y0 | SIEMENS | boerse | 69501172 |