ABB posts record orders as investors question AI boom financing

ABB’s data-center business delivered record quarterly orders, yet investors sold the Swiss engineering group’s shares as doubts about the durability and financing of the AI boom spread. Orders rose 40% to $12 billion in the three months to September 30, with data centers the biggest driver.

Revenue increased 14% to $9.70 billion, slightly below the company’s $9.74 billion consensus, while operational earnings before interest, tax and amortisation rose 24% to $2.03 billion, slightly ahead of forecasts. ABB also raised its full-year sales outlook and announced a pending $495 million investment in a joint venture with Mitsubishi Electric.

Strong demand, harder questions

Shares fell nearly 6% to 70.72 Swiss francs after the results, well below the June high of 89.14 francs. Analysts cited concern about high valuations, neocloud debt and whether AI customers can earn enough to support their build-outs. ABB’s chief executive said demand had not slowed and that the third-quarter value of data-center orders was the company’s highest yet. The split reaction captures the market’s current tension: infrastructure suppliers can report powerful demand while investors still question who ultimately pays for it.

Image: ABB.

Sources

Reuters