Weekly automotive pit stop: BWA TurboCell likely attractive to hyperscalers

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Weekly automotive pit stop: BWA TurboCell likely attractive to hyperscalers

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Automotive Industry

Weekly automotive pit stop: BWA

TurboCell likely attractive to hyperscalers

Price Objective Change

BWA TurboCell likely attractive to hyperscalers; Raise PO 12 June 2026

We hosted an expert call with Luke Saladyga, current CTO at VoltaGrid & former Data Equity

Center Architect at Oracle, to discuss automakers' and suppliers’ emergence into non- Global

auto end markets. We think BorgWarner has one of the most significant near-term Autos/Car Manufacturers

opportunities to capitalize on growing AI-related data center demand through its

TurboCell product, particularly because the product’s technical specifications appear AlexanderResearch AnalystPerry

credible, leveraging widely available automotive turbo components (80% of the BofAS

+1 646 855 1365

components are auto-related ) packaged into a turbine generator system to be used for aperry3@bofa.com

both primary power and backup generation. In addition, BorgWarner should benefit from Jack Joyce, CFA

its sourcing capabilities, procurement expertise, manufacturing scale, and long history of Research Analyst

BofAS

industrialization in autos. The expert noted that speed to market is one of the most +1 646 556 2798

important buying criteria and thinks BorgWarner will be able to scale quickly. The expert jack.joyce@bofa.com

also sees an opportunity in BorgWarner’s BESS offering, which appears more

performance-oriented than typical grid-scale battery systems, as well as in its inverter

solutions, particularly as the industry shifts toward 800-volt architectures — an area

where BorgWarner has years of automotive experience. We raise our PO to $78 (from Stock symbol key

$65) based on an EV of 7.5x our C27E adj.