SAP’s €1 Billion AI Wager and India Data Centre Fail to Arrest a 12% Weekly Rout
13.06.2026 - 10:44:38 | boerse-global.de
The software giant is spending heavily on artificial intelligence and expanding its cloud footprint in India, yet its shares have been hammered hard. SAP lost more than twelve per cent of its market value last week alone, closing at €141.52—a stark 47 per cent collapse from the 52-week peak of €266.00 touched in July 2025. Year to date, the stock is down roughly 30 per cent.
The sell-off has been so severe that the share price now sits just four per cent above the 12-month trough of €135.52, hit on 13 May 2026. The relative strength index stands at 39.4, signalling technical weakness without having slipped into oversold territory. Yet on Wall Street, the mood could hardly be more different. In June, 38 analysts slapped buy ratings on the stock, with the average price target set at €211.05—implying upside potential of nearly 50 per cent from current levels. Even the most cautious voice, J.P. Morgan, which rates SAP as neutral with a €175 target, still sees meaningful room to rise.
Management has not been idle during the rout. The company opened a new data centre in India to meet surging demand from local enterprises for cloud solutions that respect data sovereignty and security requirements. India is a top-growth market for business software, and SAP is coupling the infrastructure push with artificial intelligence tools: in June 2026 it launched “Joule in SAP for Me,” an AI-powered gateway that provides users with insights and support directly within the platform.
Should investors sell immediately? Or is it worth buying SAP?
The AI ambition goes far beyond a single product. In early May, SAP closed the acquisition of software provider Reltio, and it plans to buy US data platform Dremio in the third quarter of 2026. At the heart of the strategy lies Freiburg-based startup Prior Labs, with which SAP has signed a binding agreement to invest more than €1 billion over the next four years to develop specialised AI models for structured enterprise data. To fund this shopping spree, the group placed a €3.5 billion euro bond in late May, the net proceeds earmarked for general corporate purposes and future acquisitions. At the same time, a massive share buyback programme—worth up to €10 billion and running through 2027—remains active.
Investors, however, seem to need more convincing. The company is currently in a quiet period ahead of second-quarter results due in July, forcing traders to rely on first-quarter figures. In Q1, the cloud order backlog grew 20 per cent, and management has reaffirmed its full-year guidance: currency-adjusted cloud revenue of roughly €26 billion and free cash flow of €10 billion in 2026. Whether the India data centre, the Prior Labs deal and the analyst enthusiasm can halt the slide will ultimately hinge on whether SAP can convert these heavy investments into accelerating cloud revenue growth when it next reports.
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