Siemens stock gains 1.1% as China chip software curbs lifted
The company recently finalized its acquisition of Dotmatics, a leading provider of R&D software for the life sciences sector
As of July 3, Siemens AG (SIE.DE) is trading at €221.85, up 1.1% over the past 24 hours.
This price movement reflects a continuation of the stock’s recent bullish trend, spurred by both technical indicators and broader macroeconomic developments.
Highlights
- Siemens stock rose 1.1% to €221.85 after the U.S. lifted chip software restrictions for China, improving its Digital Industries outlook.
- Technical indicators, including a bullish MACD crossover and a strong RSI, support continued upward momentum.
- With support at €205 and resistance at €230, the stock is positioned for potential short-term gains.
The stock has recovered significantly from a recent pullback to €205.00, establishing a higher low that strengthens the current upward channel. Siemens is now comfortably above its 50-day moving average of €210.50 and its 200-day moving average of €198.30, confirming the continuation of a medium- to long-term bullish trend.
Momentum indicators also support a positive outlook. The Relative Strength Index (RSI) stands at 58, indicating there is still room for further gains before the stock enters overbought territory. Volume trends have been modestly increasing, suggesting growing investor interest. Immediate support levels can be identified at €205 and €198, which have both proven resilient during recent pullbacks. On the upside, resistance is forming around the €220 level, which the stock has just breached.
Siemens stock price dynamics (May 2025 - July 2025). Source: TradingView
From a candlestick perspective, Siemens printed a strong bullish engulfing pattern on the daily chart earlier this week, which marked the reversal from the €205 support. The MACD (Moving Average Convergence Divergence) line remains above the signal line, confirming bullish momentum, while the histogram shows steady positive divergence. Bollinger Bands have also widened, a typical signal of increasing volatility and potential continuation of the upward move. Importantly, the current price is trading near the upper Bollinger Band at €222.50, which may lead to minor consolidation before the next breakout.
Lifted U.S.-China curbs and strategic growth initiatives
Siemens has benefited notably from improved geopolitical and regulatory developments. The U.S. government's recent decision to lift export restrictions on chip design software for China has re-opened a critical revenue channel for Siemens’ Digital Industries division. This move is particularly impactful because China represents a substantial part of Siemens' EDA (Electronic Design Automation) customer base, accounting for an estimated €200 to €300 million annually. This regulatory relief not only stabilizes Siemens’ short-term earnings outlook but also reassures investors about the company’s operational continuity in key international markets.
Beyond regulatory tailwinds, Siemens continues to invest in strategic expansion. The company recently finalized its acquisition of Dotmatics, a leading provider of R&D software for the life sciences sector, for $5.1 billion. This acquisition enhances Siemens’ digital industries capabilities and positions it more competitively within the growing market for life sciences technology solutions. The move also aligns with Siemens' broader digital transformation agenda, emphasizing software-driven growth and recurring revenue streams.
In terms of investor sentiment, analysts remain broadly positive. The consensus rating for Siemens is currently a strong buy, with an average price target of €235.65 and bullish projections reaching as high as €261. These optimistic outlooks are underpinned by Siemens’ diversified revenue base, stable earnings, and strong positioning in industrial automation, digitalization, and infrastructure.
Upside scenario targets €230 in the near term
With the recent breakout above the €220 resistance level, Siemens is now positioned to test the €230 threshold in the short term. A clear and sustained move above this level could trigger additional buying interest, potentially opening the path toward the next target of €235, which coincides with analyst consensus estimates. However, investors should be cautious of potential pullbacks if momentum stalls. A failure to hold above €220 could see the stock revisiting the €210 area, with stronger downside support near €205.
The lifting of U.S. curbs on chip software exports to China has materially improved the risk outlook, while strategic acquisitions bolster the company’s growth narrative. Assuming no major macroeconomic shocks, Siemens shares are likely to continue trending higher, with €230 as the next logical milestone in the short term. Investors should monitor volume and RSI levels closely as the stock approaches this key resistance zone.
Siemens' $5.1 billion acquisition of Dotmatics strengthens its position in the life sciences tech sector and enhances its digital capabilities in data and automation. The deal is expected to add $300 million in revenue in 2025 and supports Siemens’ broader shift toward SaaS and digitalization.
