HTHIF - Hitachi: Green Transformation And Data Centres Can Drive Energy Revenue

2025-10-04 08:24:06 ET

Hitachi ( HTHIY )( HTHIF ) saw a pretty big rise yesterday on the announcement that they are collaborating with OpenAI for building out data centre infrastructure in return for access to their LLM to use in Hitachi's own suite of digitalisation products and services, growing and relevant profit areas for the company, like Lumada which is their IT and tech/software development activity that gets utilised across its segments. Lumada growth remains an important driver of the Hitachi business, and is a positive mix effect for the otherwise quite industrial company. Any improvement in its suite of services will be helpful for keeping that margin lift and growth going. Moreover, with the OpenAI partnership on data centres, Hitachi de-risks investments that it plans on making in an industrial footprint in the US, particularly in power transformers where they've earmarked $475 million for US investment (against around $3 bn in CAPEX run-rate, with energy segment around a third of the EBITA), as it moves to mitigate US tariff impact (for the FY, effect of 3% of EBITA) at least for the future revenue that they hope will come out of AI training needs. ...

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