Tech buying on the stock market, with a focus on Nvidia. ST and Prysmian rise

(Il Sole 24 Ore Radiocor) - The reassuring outlook provided by Nvidia – which, according to CEO Jensen Huang, will sell twice as many chips next year thanks to developments in artificial intelligence – is bolstering the technology sector, which, following gains on Wall Street and in Asia, is also gaining ground in Europe. On the Milan Stock Exchange, buying interest is thus favouring Stmicroelectronics and Prysmian , the latter increasingly linked to the sector due to the need for infrastructure electrification.

The former Pirelli Cavi is also benefiting from the assessment by Intermonte analysts, who have decided raise the target price to 154 euros (from the previous 130 euros), 26 per cent above the current price, and to upgrade the stock’s rating from ‘neutral’ to ‘outperform’. The experts are focusing on the acquisition of Atkore, which ‘adds 12 per cent to the estimated EBITDA for 2028. We are also slightly increasing the standalone estimates for the Transmission and Digital Solutions divisions, bringing the estimated EPS for 2027/2028 to €6.18/€7.79, representing increases of +4% and +12% respectively”.

The upgrade reflects “greater visibility on estimates — thanks to the structural growth of energy networks, electrification and data centres — and the fact that Prysmian’s business has historically managed to hold up well when the macroeconomic environment deteriorates”. Experts point out that the share price “has fallen by 17 per cent over the last three months, compared with a 9 per cent decline in our weighted panel of comparable companies. In our view, this relatively sharper fall has made the risk/reward ratio attractive at current prices”.

Looking in more detail at the Aktore transaction, the impact on EPS is estimated at ‘-3.8 per cent in 2026 – a negative effect due to the issue of new shares – +4.1 per cent in 2027’, which would be the first year of Atkore’s consolidation, and ‘+11.6 per cent in 2028’.

Another area of focus is data centres. According to Intermonte, “revenues from data centres in the Energy divisions are around three times higher than those of the Digital Solutions division. The I&C (Industrial & Commercial) division grew organically by 13.4 per cent in North America in the second quarter of 2026, driven mainly by demand from data centres. The Transmission division has an order book of €17 billion, with a margin of 21.2 per cent in the second quarter of 2026, compared with the 18–20 per cent target indicated during the Capital Markets Day. The profitability of Digital Solutions rose from 16.8 per cent to 23.8 per cent, thanks to a shift in volumes from telecommunications towards major US cloud and data centre operators (hyperscalers).’