On Tuesday, Schneider Electric shares posted one of the biggest gains on the CAC 40 index, thanks to a note from Jefferies in which the broker highlighted the company's exposure to the data center market.

At around 1:50 pm, the share price was up around 1%, after having gained up to 2.7% at the start of the session, while the CAC 40 was up 0.4%. The STOXX 600 index of European industrial stocks gained 0.3%.

In a note devoted to the energy sector for data centers and AI, Jefferies indicates that it has raised its recommendation on Schneider to 'buy'.

The broker highlights the electrical equipment manufacturer's strong exposure to the data center market, which accounts for 19% of its sales, representing annual sales of around seven billion euros (+14% average annual growth since 2018).

"The group covers all forms of data centers, from those owned by the Internet giants to colocation data centers, and covers the entire infrastructure lifecycle," it points out.

Jefferies points out that Schneider is also favorably positioned to benefit from increased investment in power grids.

On the stock market, Schneider shares have risen by almost 25% since the beginning of the year, giving a market capitalization of 129.5 billion euros.

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