Telekom Weighs €10bn AI Infrastructure Bet as Fibre Momentum Builds at Home
Published on 08/16/2026 at 11:31 | Redaktion boerse-global.de
Deutsche Telekom is examining the prospect of joining a European tender for a so-called AI gigafactory with a project volume of €10bn, a move that would thrust the Bonn-based group into the heart of the continent's push to build computing capacity for artificial intelligence. Chief executive Tim Höttges has described participation as an option under review, according to Reuters, rather than a decision already taken.
The deliberations come at a moment when the company's operational engine is firing on multiple cylinders. Fibre rollout in Germany is accelerating, AI tools are being deployed to squeeze costs out of network operations, and the balance sheet is throwing off enough cash to contemplate a commitment of this scale. Yet the potential gigafactory involvement would mark a departure from the group's traditional telecoms footprint, introducing fresh capital demands and a different risk profile into a portfolio already stretched across two continents.
A Quarter of Contrasts
The financial foundation for such strategic ambition was laid in the second quarter. Adjusted EBITDA after leasing climbed to €11.82bn, up from €11.0bn in the same period a year earlier, while revenue rose to €29.93bn. On an organic basis, revenue grew 3.3 per cent to €29.9bn and adjusted EBITDA advanced 7.3 per cent to €11.8bn.
The picture on the bottom line is more nuanced. Net profit eased to €2.45bn from €2.615bn, while the adjusted group profit rose 11.1 per cent to €2.8bn. The divergence stems largely from integration costs linked to T-Mobile US's acquisition of UScellular, which weighed on the reported figure. Management has held firm on its full-year guidance: adjusted earnings per share of around €2.20 and adjusted EBITDA after leasing of roughly €47.5bn.
Fibre Finds a Tailwind
Within Germany, the fibre story is gaining traction. The group added 161,000 new FTTH connections in the second quarter, helped by a regulatory shift that is reshaping the broadband market. The scrapping of the so-called ancillary cost privilege — which previously allowed landlords to pass cable-TV charges through to tenants via utility bills — is steering demand toward standalone fibre lines as traditional cable offerings lose their appeal. Analysts view this as a structural advantage for the company's build-out.
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Across the Atlantic, T-Mobile US recently completed the sale of its 800MHz spectrum portfolio to Grain Management, evidence that portfolio management continues even after the collapse of the proposed merger with the US carrier's parent in late July. That abandoned transaction, which dominated headlines at the time, has receded as the operational narrative reasserts itself.
AI: Cost Cutter and Growth Option
Artificial intelligence is being deployed internally to manage networks and handle customer service, with NVIDIA among the partners. The goal is to reduce operating costs across a network infrastructure that runs to billions of euros — an approach that promises meaningful economies of scale. On 5 October, the group plans to lay out its AI strategy in greater detail at a dedicated investor day.
Satellite connectivity is also on the radar. Höttges has confirmed that partnerships with AST SpaceMobile and Amazon's satellite broadband project are being evaluated, though he stressed that satellite links would complement rather than replace terrestrial mobile networks.
Insider Buying and the Chart
Confidence in the strategy appears to extend into the executive suite. During calendar week 32, managers purchased 170,030 shares while selling a negligible 1,770 — a signal that those closest to the business see value at current levels.
The market, however, remains measured. The stock closed Friday at €28.69, up 0.7 per cent on the day. Over 30 days, the gain stands at 8.3 per cent, though the shares have slipped 1.1 per cent over the past week. The price sits just 0.5 per cent above its 200-day moving average of €28.54, suggesting a mildly positive medium-term trend without decisive momentum. The 52-week high of €34.35, reached in late February, remains 16 per cent away.
Analysts See Headroom
The post-results reaction from the sell side has been broadly supportive. JPMorgan kept its Overweight rating with a price target of €38, while Bernstein Research reiterated Outperform at €37. Deutsche Bank is more bullish still at €40, with UBS at €36.20 and Berenberg at €35.20, both with buy recommendations. Every target sits comfortably above the current trading level.
Whether the AI gigafactory option becomes a concrete commitment remains an open question. For now, the operational business — fibre growth in Germany, cost discipline through AI, and a confirmed outlook — provides the primary driver for investors, with the infrastructure tender serving as a potential upside catalyst. The next milestone on the calendar is the third-quarter report on 5 November, which will offer a fresh read on whether the current trajectory can be sustained.
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