Power Equipment Stocks Surge as AI Data Centers Drive Electricity Demand

Stock News04-08

Power equipment stocks showed strong gains. At the time of writing, Harbin Electric (01133) rose 11.2% to HK$23.04, while Dongfang Electric (01072) advanced 9.79% to HK$38.80. Wasion Holdings (03393) increased by 8.23% to HK$30.50.

The rally follows analysis from Cinda Securities, which highlighted that the construction of AI data centers is boosting electricity demand. Gas turbines, with advantages including fast start-up times, strong peak-shaving capability, and low carbon emissions, have become a core solution to address power shortages in regions such as the United States. General Electric Vernova secured new gas turbine orders of 18GW in the fourth quarter of 2025, with its order backlog expected to reach 80GW by the end of 2025. Meanwhile, Siemens Energy reported new gas turbine orders of 26GW for fiscal year 2025, equivalent to 194 units, representing a 94% year-on-year increase. As international giants announce capacity expansions, domestic companies in the gas turbine supply chain are positioned to benefit significantly.

A research report from Soochow Securities added that overseas computing power upgrades are continuously raising requirements for AI data centers, with clear trends toward higher voltage, direct current, and higher power. Solid-state transformer technology is also accelerating in adoption. Domestic companies related to these areas are encountering new export opportunities. The report maintains a positive outlook on leading firms with technological and overseas channel advantages, noting that power shortages in North America represent a major trend, and continues to favor transformers, gas turbines, and solid-state transformers.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment