Deutsche Telekom's Munich AI Factory Sells Out as Analysts Trim Targets on Buyback Disappointment
Published on 11/11/2026 at 12:41 | Editorial boerse-global.de
Deutsche Telekom's first-phase AI computing facility in Munich's Tucherpark has reached full capacity just seven months after launch, prompting the Bonn-based group to announce an expansion on Monday. The build-out, costing just under a further quarter of a billion euros, will lift the site's capacity to 20 megawatts.
Corporate clients already signed up for the Munich AI factory include Siemens and Daimler Truck, according to Handelsblatt. Europe's largest telecoms group is also weighing an additional broadening of its Bavarian commitment, though no final investment decision has yet been taken.
The partner ecosystem around the project is widening too. T-Systems and Sparxity agreed on 3 November to work together, a tie-up the companies say will bolster sovereign AI infrastructure in Europe. Under the letter of intent, the energy-efficient AI computing technology is to be integrated into Telekom data centres, with the next Sparxity chip generation slated for rollout in 2028.
Guidance Raised, but Payout Plans Fall Flat
Those operational developments sit alongside a set of quarterly figures published roughly a week ago that came with an upgraded outlook. For 2026 the group now expects adjusted EBITDA AL of around EUR 47.6 billion and free cash flow AL of around EUR 20.1 billion.
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In the third quarter of 2026, group revenue rose 5.5% organically to EUR 31.1 billion. Adjusted EBITDA AL climbed 8.0% to EUR 12.2 billion, while adjusted net profit advanced 12.7% to EUR 3.0 billion.
Shareholders were also handed the board's distribution plans: a dividend of EUR 1.10 per share for the 2026 financial year, and share buybacks of up to EUR 2 billion earmarked for 2027.
Two Brokers Cut Fair Values, Buy Ratings Intact
The market's reaction to that package was mixed, and analysts have been adjusting their valuation marks accordingly. Goldman Sachs lowered its price target to EUR 36 from EUR 38 on Friday, according to media reports, while keeping its buy recommendation unchanged.
DZ Bank followed on 5 November, cutting its fair value to EUR 33 from EUR 35 and leaving its "Buy" rating in place.
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dpa-AFX attributed the share price response chiefly to disappointment over the size of the announced buyback programme, with the up to EUR 2 billion planned for 2027 falling short of expectations. The news agency also pointed to pressure on T-Mobile US from SpaceX's entry into mobile frequencies as a second drag on sentiment.
Even so, both houses continue to recommend the stock — a signal that the trimmed targets reflect recalibrated valuation rather than a loss of conviction in the group's operating trajectory.
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