Growth in AI Server Segment Offers Promising Outlook For SCHMID Group N.V. (SHMD)

SCHMID Group N.V. (NASDAQ:SHMD) is among the 13 Best German Stocks to Invest in Now. It is a global leader in providing solutions related to electronics, photovoltaics, glass, and energy systems for the high-tech industry.

Growth in AI Server Segment Offers Promising Outlook For SCHMID Group N.V. (SHMD)

A bustling industrial facility with a series of chemical filtration systems on display.

Last year, SCHMID Group and Pegasus Digital Mobility Acquisition Corp announced the completion of their business combination, following which the company’s legal name became SCHMID Group N.V., with its shares trading on the Nasdaq Global Select Market under the ticker “SHMD”.

SCHMID Group N.V. (NASDAQ:SHMD) had a challenging year in 2024, largely due to the trade tensions between the United States and China. However, in an update shared on May 21, the company said the market situation is experiencing a turnaround, with incoming orders within the anticipated range.

The management has cited strong growth in the AI server segment as a key driver of the positive market trend, as it has resulted in a significant surge in volume. SCHMID Group N.V. (NASDAQ:SHMD) said that it expects the current trend to continue and intensify in 2025 and 2026, offering an encouraging outlook for the company.

CEO Christian Schmid shared the following remarks about the market:

 “The current market signals clearly show that our strategic realignment is bearing fruit. The situation is visibly stabilizing – and we are seizing the opportunities provided by technological advancements, particularly in the field of artificial intelligence.”

SCHMID Group N.V. (NASDAQ:SHMD) is also exploring several financial and strategic partnership opportunities to further strengthen its market position and expand growth, which would guard against the challenges emanating from the tariff wars in the medium to long run.

While we acknowledge the risk and potential of SHMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.