Softbank’s Massive French AI Splash Highlights the Gap SAP Must Bridge

The week ahead for SAP reads like a study in contrasts. One the one hand, a torrent of capital is pouring into European artificial?intelligence infrastructure – a development that promises to swell demand for the enterprise software that makes those computing cycles useful. On the other, fresh survey data from the DACH region confirms that companies in SAP’s own backyard are still dragging their feet on AI adoption.

Shares of the Walldorf?based software giant closed Friday at €156.40, up 3.67% in a single session that handily beat the broader software sector’s average gain of 1.35%. Yet the bounce does little to mask a punishing year: the stock has lost 22.6% since January and 40% over the past twelve months. At nearly half the distance from its 52?week peak of €271.60, the chart tells a story of deep technical damage. The relative strength index now sits at 78.2, flashing overbought territory and raising the odds of a short?term pullback.

The Friday rally was partly fueled by lingering momentum from SAP’s Sapphire conference in May, where the company unveiled its vision of an “Autonomous Enterprise” powered by more than 50 domain?specific AI agents. Recent acquisitions of Reltio, Dremio and Prior Labs reinforce the strategy of embedding artificial intelligence directly into customer workflows. Analysts at Deutsche Bank, BMO and Goldman Sachs have all reiterated buy ratings, arguing that SAP’s “Clean Core” approach and cloud transformation insulate it from the SaaS downturn that has punished many software peers.

Should investors sell immediately? Or is it worth buying SAP?

But the macro picture also offers a fresh catalyst. Japan’s Softbank announced plans to invest up to €75 billion in AI data centres in France, with an initial phase of €45 billion allocated to build 3.1 gigawatts of capacity by 2031, concentrated in the Hauts?de?France region. As European computing muscle expands, the need for software that can harness that power grows – and SAP, as the continent’s dominant ERP provider, stands to benefit if enterprise demand finally picks up.

That “if” is the rub. A study by WHU and PwC, surveying CFOs across Germany, Austria and Switzerland, found that fewer than half of companies use AI for automated data analysis, while roughly 25% lack clear policies for deploying large language models. Budget constraints and a shortage of in?house expertise remain the primary barriers. The potential is enormous – the McKinsey Global Institute estimates that up to 59% of working hours in Germany could be technically automated by 2030, unlocking productivity gains worth as much as $486 billion, especially in manufacturing. But turning potential into revenue requires a shift in corporate behaviour that has been slow to materialise.

All eyes now turn to Paris. On Wednesday 3 June, CEO Christian Klein will speak at the BNP Paribas Exane CEO Conference. Investors are hoping for details on how SAP plans to monetise its new AI agents and the Joule assistant, which is already deployed at Ericsson. They will also be listening for updates on the recent acquisition spree. The official second?quarter numbers are due on 22 July, with management guiding for cloud revenue of €25.8?26.2 billion (23?25% growth) and operating profit of €11.9?12.3 billion.

For now, the stock is trying to stage a comeback from brutal levels, trading 18% below its 200?day moving average. The overbought RSI warns that the technical rebound may be fragile. Yet the fundamental story – a clear product roadmap, strong analyst support, and a massive infrastructure build?out in Europe that could eventually feed demand – remains intact. Klein’s appearance in Paris will test whether SAP can convince the market that it is ready to close the gap between promise and practice.

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