ABB: Conference feedback

Research evidence excerpt

ABB: Conference feedback

Equity Research

European Capital Goods

21 May 2026

ABB

Conference feedback

Mgmt think AI investment is just in early stages. ABB $/MW to

increase significantly on new DC architecture. Europe lack of

energy / bureaucracy holding regional growth back but ABBN.S/ABBN SW EQUAL WEIGHT

European Capital Goods NEUTRAL

change is coming. Price Target CHF 71.00

Price (20-May-26) CHF 81.34

We hosted ABB's CEO at our Barclays European Leadership conference today. Below is a Potential Upside/Downside -12.7%

summary of our interpretation of the key feedback. Source: Bloomberg, Barclays Research

•• AI/DC investment still in early stages, ABB opportunities increasing: Despite already European Capital Goods

strong increases in hyperscaler capex in recent years and 2026 forecast to grow ~90% YoY, ABB George Featherstone, CFA

believes we are still early in the investment cycle for AI. This is based on customer +44 (0)20 3555 8585

conversations about the pipeline ahead. Importantly, ABB orders only reflect projects already george.featherstone@barclays.com

permitted and with grid connection, reducing any near-term cancellation risks from projects Barclays, UK

facing bottlenecks on power/permits. ABB is positioning for the 'final phase' of 800vdc and Vlad Sergievskii

sees side-car technology as a temporary solution. Instead ABB is focusing on industrialisation +44 (0)20 7116 1117

of Solid State Transformer technology and anticipates beginning to take orders as early as vlad.sergievskii@barclays.com

2027. The company is developing a complete solution across direct current MV equipment for Barclays, UK

this new architecture (MV UPS, SST, circuit breakers and drives), which will result in a Timothy Lee, CFA