Siemens Energy Shares Test €170, Making Record High

Siemens Energy AG shares (ETR: ENR) have broken through the €170 barrier for the first time, capping a remarkable 38% advance since the start of 2026 as the German industrial giant capitalizes on surging demand for power infrastructure driven by the artificial intelligence revolution. The stock is 2.4% higher today, reaching the new record following the release of first-quarter results that significantly exceeded market expectations.

The Frankfurt-listed shares are now trading at levels that would have seemed improbable just months ago, with the rally reflecting a fundamental transformation in the company's fortunes. Markets have responded enthusiastically to evidence that Siemens Energy is emerging as a primary beneficiary of the massive electricity demand generated by AI data centers, positioning the firm at the intersection of two powerful secular trends: digitalization and energy transition.

First-quarter net profit surged to €746 million, nearly tripling the €252 million recorded in the same period last year. The substantial improvement was driven predominantly by robust demand for gas turbines and grid equipment, as technology companies race to build the infrastructure necessary to support computationally intensive AI workloads. This performance marks a decisive shift from the operational challenges that plagued the company in previous years, particularly within its wind energy division.

Siemens Energy has moved swiftly to capitalize on the opportunity, announcing a $1 billion investment to expand production capacity for grid equipment and gas turbines in the United States. The strategic deployment of capital targets the American market, where electricity demand is accelerating rapidly as hyperscale data center construction intensifies. This investment underscores management's confidence in sustained demand and positions the company to capture market share in what is expected to be a multi-year infrastructure buildout.

The improved performance of Siemens Gamesa, the company's wind turbine division, has provided additional support for the share price rally. Operating losses narrowed dramatically to €46 million in the first quarter, down from €221 million in the prior-year period. The improvement reflects enhanced productivity in offshore wind projects and better execution in onshore turbine operations. Management has set clear targets for the division, aiming to achieve breakeven results by the end of 2026 and return to profitability in 2027.

The confluence of factors driving Siemens Energy's ascent represents a textbook case of operational improvement meeting favourable market conditions. The company has successfully navigated the challenges within its wind business while simultaneously positioning itself to benefit from structural demand growth in power infrastructure. As AI continues to reshape global electricity consumption patterns, Siemens Energy appears well-placed to sustain momentum.