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Siemens and GlobalFoundries recently signed a memorandum of understanding to integrate AI-driven automation, electrification, and digital solutions across semiconductor manufacturing operations.
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This collaboration positions Siemens more firmly within semiconductor production workflows, potentially deepening its role in high-value industrial AI and fab automation ecosystems.
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We’ll now examine how this AI-focused semiconductor partnership could influence Siemens’ automation-led investment narrative and longer-term earnings profile.
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To own Siemens, you need to believe in its ability to turn its global automation, electrification and industrial software footprint into steadily growing, higher margin digital revenues. The new AI-driven GlobalFoundries partnership reinforces that narrative, but does not materially change the biggest short term swing factor, which remains demand weakness in core automation and software, nor the key risk from intensifying global competition, especially in China.
Among recent announcements, the expanded collaboration with Capgemini on AI native digital solutions is most relevant, as it underlines Siemens’ push to embed industrial AI and end to end automation across sectors beyond semiconductors. Together with the GlobalFoundries MoU, it speaks directly to the core catalyst many shareholders are watching: the shift toward more software, more recurring revenue and deeper integration into customers’ critical operations.
Yet, against this AI and automation optimism, investors should be aware that growing competition from aggressive local automation players in China could…
Read the full narrative on Siemens (it’s free!)
Siemens’ narrative projects €93.6 billion revenue and €10.5 billion earnings by 2028. This requires 6.1% yearly revenue growth and an earnings increase of about €2.6 billion from €7.9 billion today.
Uncover how Siemens’ forecasts yield a €253.00 fair value, a 6% upside to its current price.
XTRA:SIE 1-Year Stock Price Chart
Nine members of the Simply Wall St Community currently see Siemens’ fair value between €208.46 and €297.77, underscoring how far opinions can differ. Against this wide range, the key question is whether Siemens’ push into AI enabled automation can offset structural pressure on its Digital Industries division and support the kind of earnings profile many shareholders appear to be assuming.
Explore 9 other fair value estimates on Siemens – why the stock might be worth as much as 25% more than the current price!
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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.
Companies discussed in this article include SIE.DE.
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