Siemens: Between an AI Push and Record Demand
Siemens is transforming from a traditional industrial group into a technology company. Under the slogan “ONE Tech Company”, the firm is integrating software, hardware and artificial intelligence into a single ecosystem. This is evident in the AI investments worth billions and the strategic partnerships with NVIDIA and Microsoft. The collaboration on an “Industrial AI Operating System” stands out in particular and could set new standards in the long term. The group can thus benefit from two aspects of the AI boom: first, as a supplier of industrial tools, and second, as a provider of data centre infrastructure.
AI data centres require electricity, which has fuelled demand for electrical infrastructure and led to a surge in orders for Smart Infrastructure. In the third quarter, the division recorded order intake of over EUR 8 billion for the first time. This represents triple-digit year-on-year growth. In the first nine months, revenue in this segment stood at just under EUR 6 billion. To meet demand, Siemens is investing over USD 200 million in new US production facilities. The transition to 800-volt DC architectures will take several more years, but should then lead to higher power densities and thus offer additional potential.
Operating performance is also impressive in other respects. The EUR 132 billion order book provides planning certainty, and free cash flow reached EUR 4.1 billion. Digital Industries is once again recording strong growth, while the software business has even exceeded its targets with an 18% increase in revenue. The planned merger of the four automation units is intended to improve both innovation and scalability. However, dependence on major contracts in the data centre business remains a source of uncertainty. Furthermore, with a P/E ratio of around 27, the valuation is no longer favourable. The share price has already priced in the improved fundamentals.
First Hydrogen: From Hydrogen to a Technology Ecosystem
First Hydrogen started as an innovative developer of hydrogen-powered commercial vehicles based on a best-of approach. The demonstration vehicles, fitted with Ballard fuel cells and boasting a range of over 500 km, formed the core of the business. This was complemented by hydrogen production via electrolysis and the development of a refuelling infrastructure. The “Hydrogen-as-a-Service” model was intended to secure recurring revenue. In parallel, the subsidiary First Nuclear was researching the use of Small Modular Reactors (SMRs) as a base-load energy source for hydrogen production.
Since February 2026, the company has been establishing a second pillar of its business by acquiring a 60% stake in Exodus Actuation Solutions, which holds over 30 patents in high-performance actuators. This technology serves as the “muscle” for autonomous systems, enabling precise movements in industrial robotics, electric mobility systems and autonomous platforms such as drones. With the founding of First Humanoid and the securing of relevant domains, First Hydrogen is targeting the USD 5 trillion market for humanoid robotics forecast by Morgan Stanley. This positions the company at the intersection of energy autonomy and artificial intelligence.
The company’s latest press release, issued in September 2026, marks the next step. First Hydrogen has secured exclusive global rights to a patented unmanned ground vehicle (UGV). The vehicle combines eight semi-robotic legs with wheeled units for amphibious operations and extreme terrain. The modular load bed enables drone launches, material transport or security operations. With an agreed two-year development phase leading up to commercialization, and full ownership of the intellectual property and all deliverables, the company has secured its entry into the growing defence and logistics market. The combination of hydrogen propulsion, autonomous navigation and AI sensor technology creates a new ecosystem for zero-emission, unmanned mobility in demanding operational environments.
SpaceX: Great Potential Requires Capital
Following its IPO, SpaceX presents itself not merely as a space company, but as a complex technology conglomerate. Its three operational segments are Space, Connectivity and AI. They are developing at different rates. While the Connectivity business has a profitable cash cow in Starlink, the AI division is driving growth with a threefold increase in revenue year-on-year. At present, the space business makes the smallest contribution with revenue of almost USD 1 billion, but should not be underestimated given the strategic importance of Starship. This vertical integration enables SpaceX to position its own satellites more cost-effectively and, in the long term, even to establish AI data centres and servers located not on Earth but in satellite orbits in space.
These are fascinating prospects, but they also require a huge amount of capital. With investments totalling USD 18.4 billion in the second quarter alone and a negative free cash flow of USD 25 billion in the first half of the year, SpaceX is facing a crucial test. The AI infrastructure is consuming the lion’s share of funds, but according to the CFO, it is expected to pay for itself within a year and will then benefit from the longer-lasting infrastructure. Operational implementation is not going smoothly. There have been personnel changes in data centre management and technical issues with the facilities. Investors are therefore left wondering whether the ambitious target of 20 gigawatts by the end of 2027 is realistic. Access to Nvidia’s latest GPUs could alleviate this bottleneck.
Analysts’ estimates for SpaceX vary widely, underscoring the uncertainty in its valuation. The range of price targets, from USD 117 to USD 450, reflects the difficulty in accurately modelling future margins and growth potential. In particular, the acquisition of xAI and the merger with the X platform are fundamentally transforming the company’s profile. The prospect of an annualized revenue rate of USD 100 billion by the end of the year and the ambitious USD 1 trillion target by 2030 demonstrate management’s enormous confidence. As an investor, one must weigh up the huge potential against the significant execution risks.
The USD 200 billion supercycle driven by AI, robotics and space exploration is shaping a new economic era. Siemens is successfully bridging the gap between industrial AI infrastructure and record demand with its “ONE Tech Company” strategy. First Hydrogen is evolving from a hydrogen pioneer into a promising robotics ecosystem with exclusive rights secured. SpaceX, meanwhile, is grappling with substantial capital requirements and operational uncertainties despite its visionary plans for AI in space.
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