Barclays Warns AI Power-Equipment Suppliers Face Pricing and Volume Pressure as Boom Peaks

Barclays analysts warn that the profit boom for AI data-center power equipment suppliers may be nearing its peak, with vendors such as Siemens Energy (SMERY-US), ABB (ABBNY-US) and Schneider Electric (SBGSY-US) facing simultaneous pressure on prices and volumes. The team led by George Featherstone said peak-cycle margins could quickly normalize as AI operators demand higher returns and competition intensifies, calling a joint price-and-volume squeeze the "worst-case scenario" for suppliers. AI-linked trades weakened again on Tuesday, extending a recent pullback. Siemens Energy shares are down 31% from their April high and near their lowest level since January; Schneider Electric has fallen 22% from its August peak, and ABB has seen a similar decline from its June high. Barclays cited a potential roughly $45 billion compute-supply deal between Nscale and Anthropic, whose per-GW annual pricing is well below recent market benchmarks such as CoreWeave's (CRWV-US) short-term contract disclosed in September. The analysts cautioned the contracts are not directly comparable but said the gap signals customers are pushing to renegotiate terms. Rising competition adds further pressure, with large-scale capacity expansion in power and medium-voltage electrical equipment drawing new entrants.