Siemens Energy forecasts 'massive tailwind' from Trump power drive

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Stocks in Siemens Energy, which designs and makes equipment for wind and gas turbines, as well as transmission technology and power grid equipment, jumped almost 10% to a record high on Wednesday after CEO Joe Kaeser said the company was "in the sweet spot" in terms of benefiting from current trends.

The group's stock erased its gains after its main rival, GE Vernova, reported lower-than-expected fourth-quarter sales. However, it was still trading 6.7% higher at 11:44am GMT.

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Kaeser said at the World Economic Forum annual meeting in Davos, Switzerland, that the surge in demand for data centers - which are crucial to AI technology - as well as the stable energy supply needed to power them, has given all energy companies a boom that's unmatched.

Trump, who took office this week, announced a possible investment of up to $500 billion late on Tuesday, sparking hopes that companies supplying energy network equipment will see a surge in demand due to a boom in the power-hungry AI sector.

The new U.S. president also declared a national energy emergency, with the aim of giving him the ability to relax the environmental regulations on energy infrastructure and projects and speed up the permitting process for new transmission and pipeline infrastructure.

"I believe the new administration has clearly stated that this is the new era for energy," Kaeser said, noting this will benefit Siemens Energy and that the next 5-10 years will be a very good time to be in the U.S. market.

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(Reporting by Divya Chowdhury and Christoph Steitz; Editing by Matthias Williams, Mark Potter, and Alexander Smith)