Siemens Energy (XTRA:ENR) Is Up 7.4% After Landmark 1.1 GW Gas Turbine Deal for Texas AI Campus

• In September 2025, Fermi America, alongside the Texas Tech University System, announced two landmark letters of intent with Siemens Energy to supply 1.1 GW of advanced gas turbines and collaborate on nuclear steam turbine technologies for an 11 GW AI power campus in Texas.
• This agreement signals the rising importance of large-scale, reliable energy solutions to support the growing power needs of artificial intelligence and data center infrastructure in the U.S.
• We'll look at how supplying advanced gas and nuclear technology for a major AI campus could influence Siemens Energy's investment narrative.

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Siemens Energy Investment Narrative Recap

To be a shareholder in Siemens Energy, you need to believe that long-term electrification and power sector modernization, driven by demand from data centers and AI infrastructure, will offset execution risks in wind and grid businesses. The Fermi America agreement illustrates increasing demand for large, reliable power projects, but its direct impact on the pace of the wind division turnaround, the company’s most important short-term catalyst, may not be material; execution at Siemens Gamesa remains the central risk to watch right now. Among recent announcements, Siemens Energy’s collaboration with Eaton in June to deliver integrated onsite power for data centers closely aligns with the Fermi America project, underscoring the focus on scalable, dependable power solutions as AI accelerates energy needs. However, while such large orders grab headlines, investors should be aware that persistent uncertainty around wind business recovery could still...

Read the full narrative on Siemens Energy (it's free!)

Siemens Energy's narrative projects €48.7 billion revenue and €3.6 billion earnings by 2028. This requires 9.1% yearly revenue growth and a €3.4 billion increase in earnings from the current level of €198.0 million.

Uncover how Siemens Energy's forecasts yield a €93.67 fair value, a 12% downside to its current price.

Exploring Other Perspectives

Private investors in the Simply Wall St Community estimate fair values from €87.17 to €149.05, based on eight different forecasts. While consensus recognizes the surge in grid and turbine orders, many caution that lingering execution risks in the wind unit could weigh on overall performance.

Explore 8 other fair value estimates on Siemens Energy - why the stock might be worth as much as 41% more than the current price!

Build Your Own Siemens Energy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Siemens Energy research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Siemens Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Siemens Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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