Siemens Energy Tumbles as AI Fears Collide With Siemens AG's Shrinking Stake

Siemens Energy slid 6.7% to EUR 134.30 as an AI warning from Anthropic's CEO hit the sector; JPMorgan kept its Overweight rating and EUR 245 target.

Siemens Energy stock came under heavy selling pressure to start the week, with the DAX-listed shares dropping 6.7% to EUR 134.30 on Monday from Friday's close of EUR 143.92. The decline extends a rough stretch that has shaved roughly 16% off the share price over the past 30 days — and notably, no company-specific news triggered the slide.

An AI Warning Ripples Through the Sector

The catalyst came from across the Atlantic, where Anthropic chief Dario Amodei reportedly warned of an "AI swarm" that could seize control of the internet within six to twelve months and inflict hundreds of billions of dollars in damage. The remarks, amplified by Elon Musk and Sam Altman, landed on a market that has spent months awarding premium valuations to AI infrastructure plays.

Siemens Energy has been a prime beneficiary of that narrative, given its role as an equipment supplier for data centers and power grids. The stock's sharp reaction reflects how tightly its growth story has become tethered to AI-driven electricity demand. The pain was hardly isolated: Infineon and construction group Hochtief each fell as much as 6%, while chip equipment makers Aixtron and Süss Microtec lost up to 8% at one point. The unease spread beyond Germany, hitting AI-linked names from SK Hynix and Samsung in Seoul to VAT and Comet in Switzerland.

LBBW, as cited by Handelsblatt, pointed to the risk of an investment slowdown and weakening earnings expectations should the debate over AI's development pace intensify. For Siemens Energy, which supplies grid infrastructure and power plant technology, any pullback in data center spending would deal a meaningful blow — a chunk of its growth case rests squarely on rising electricity demand from AI facilities.

Chart Picture Shows Deep Technical Damage

The selloff has pushed the stock well below its moving averages. It now trades 11% under its 50-day line and 12% beneath the 200-day average — a portrait of persistent weakness. The shares sit 31% below their 52-week high of EUR 195.38, reached in April. With an RSI of 34.7, the stock has entered oversold territory, suggesting potential for a near-term breather, though that is no buy signal in itself.

Analyst sentiment, however, remains broadly constructive. Nine of eleven analysts rate the stock a buy, with a median price target sitting well above current levels. The planned spin-off of the Transformation of Industry division, carrying a potential valuation north of EUR 10 billion, remains a medium-term value driver currently overshadowed by market jitters.

Siemens AG's Retreat Continues

Separately, Siemens AG has trimmed its stake in its former subsidiary once again. A mandatory disclosure under Section 40 of the German Securities Trading Act (WpHG), published last Wednesday, confirmed the position fell below the reporting threshold to 4.98% of voting rights. The holding is not directly owned by Siemens AG but held through its subsidiary Siemens Beteiligungen Inland GmbH.

The move extends a divestment process running since the 2020 spin-off, when the parent still held 35.1% of what is now its former energy unit. The largest single shareholder is now the legally independent Siemens Pension-Trust e.V. For investors, the reduction is above all a signal: the operational and capital-market separation of the two companies continues to advance, even as they maintain close business ties on individual projects.

JPMorgan Sticks to Its Bull Case

Alongside the voting rights disclosure, one analyst call drew fresh attention. JPMorgan reaffirmed its "Overweight" rating and kept its price target at EUR 245 following talks with CEO Christian Bruch — well above current levels. The market read the note as a fresh impulse for the stock, even as other houses take a more cautious line: Jefferies cut its target to EUR 210 in early September while maintaining its "Buy" rating.

Operational Momentum Across Two Continents

Away from capital markets, Siemens Energy continues to make operational headway. In Guyana, the prime minister met with a Siemens Energy team last week to advance preparations for the Gas-to-Energy project, where the company is slated to operate a 300-megawatt power plant. In the UK, meanwhile, Siemens Energy secured an order from Rolls-Royce SMR to manufacture steam turbine components for a small modular reactor project, with the parts to be produced at the Newcastle site.

Fundamentals Hold, Sentiment Wobbles

Operationally, Siemens Energy recently impressed with a 17% revenue increase and an upgraded free cash flow forecast. Monday's plunge, then, says less about business performance than about a jittery broader market that reacts sharply to any tremor in the AI narrative. Despite the positive news flow, the stock remains under pressure — Friday's 2.3% gain to EUR 143.92 notwithstanding, it is down 10% on the month and 26% below its April 52-week high, though it still holds a 20% gain year-to-date.

That leaves investors with a split picture: Siemens Energy is gaining substance through projects in Guyana and the UK, while the stock has yet to recover its footing after weaker quarterly figures roughly a month ago. The reduction in Siemens AG's stake is unlikely to alter that equation — it forms part of a years-long, orderly retreat rather than a reaction to current business developments. Over the coming days, the focus will be on whether concerns about AI's development pace harden or prove to be a passing bout of uncertainty.