Don't fear the potential AI bubble; we won't go bust regardless, said Siemens Energy's CEO Christian Bruch to the company's investors. In recent months, Siemens Energy has become a star of the German stock market. Its shares have risen faster than others due to a 30-34% increase in orders for gas turbines. The main customers of the turbines are owners data centers, who are competing with each other and the rest of the world, which raises concerns.
Siemens Energy investors are worried that the AI boom could come to an abrupt halt — the bubble inflated by this trend might burst, leaving Siemens Energy with a portfolio of preliminary applications that may never convert into finished products. This will directly impact the company's stock value: they will depreciate as the energy business generates the bulk of the company's revenue.
"So far, we see that reservations [for turbine manufacturing applications] are turning more or less one-to-one into effective orders," Bruch said Wednesday on Bloomberg Television. "I am relatively confident that this capacity will be needed in the future."
The needs of AI have left energy-deprived Europe, which is already suffering from energy shortages, without reserves, as well as the U.S., where new fossil fuel plants and nuclear power stations haven't been built for decades. AI has 'abandoned' the green energy diet due to a lack of it. This is why Microsoft, Amazon, Google, and others are building their own gas turbine power plants to generate electricity in the shortest time possible.
In the first quarter of the financial year 2026, Siemens Energy's total order volume grew by more than 30-34% and reached €17.6 billion (about $21 billion). The Gas Services segment particularly stood out, recording a historical high with 102 gas turbines booked. This led to a record order portfolio of €146 billion (about $174 billion). Around 40% of gas turbine orders came from the U.S., where major tech companies are actively building data centers. Increased demand has also been noted in Europe (Poland, Turkey), Taiwan, and other regions. This gives the manufacturer confidence that its products will be in demand regardless.
The company's financial results are also impressive: net profit has nearly tripled compared to last year. Strong growth in gas turbine manufacturing and energy distribution (transformers, switchgear, etc.) compensates for the challenges faced by the wind division Siemens Gamesa, where losses, although decreasing, continue to persist. The company hopes that Siemens Gamesa will return to profitability by 2026. To achieve this, it plans to secure several contracts for the restoration of wind turbines in previously initiated projects, especially in light of new order cancellations in the U.S. However, that will be a different story.
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Source: 3dnews.ru
