Bankinter | Microsoft reiterates its plan to invest $80 billion in AI during this fiscal year (which ends in June) although it ‘could accelerate or strategically adjust its infrastructure in some areas.’
Bankinter’s analysis team opinion: Microsoft’s comments came after two analyst reports suggesting that Microsoft had cancelled some data centre leases. According to Bloomberg, Monday’s report stated that spending was being replaced by other competitors such as Oracle. These comments raised fears of a reduction in expectations for growth in energy demand and investment weighed on companies linked to the sector: Constellation Energy (-5.9%); Vistra (-5.1%) and in Europe, Schneider Electric (-6.9%) or Siemens Energy (-4.1%) in the session.
We maintain the recommendation to Sell Siemens Energy after the excellent performance of the stock, which was trading at high multiples. We maintain the recommendation to Buy (data centres account for 24% of its end activities; buildings, Industry and Infrastructure the remaining 76%), with a very balanced geographical portfolio and solid financial position (1x EBITDA).
