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Germany is lagging behind in AI development. Together with Deutsche Telekom, the US company Nvidia wants to set up an AI data center. CEO Huang promised at the meeting with Chancellor Merz that it would be specifically geared towards the needs of local industry.

(13.06.2025, 14:10)

Deutsche Telekom is building an AI data center for European industry in Germany in collaboration with chip manufacturer Nvidia. "We must seize the opportunities offered by artificial intelligence (AI), revolutionize our industry and secure a leading position in the global technology competition," said Deutsche Telekom CEO Tim Höttges (62) on Friday. "Our economic success depends on quick decisions and collaborative innovation."

The project paves the way for the planned AI gigafactories. Five of these particularly powerful data centers are to be built in the European Union (EU). A few weeks ago, it was announced that Deutsche Telekom, together with SAP, the web host and cloud provider Ionos, wanted to bid for the construction of such a facility.

Schaeffler and Siemens also intensify cooperation

Nvidia will reportedly supply at least 10,000 AI processors from the currently most powerful "Blackwell" series for the announced industrial AI cloud. The additional computing power should be ready for use in 2026. "This infrastructure will not only be available to the market for industrial applications, but will also be specifically made accessible to start-ups and research institutions," Telekom emphasized.

On Thursday, automotive supplier Schaeffler announced an in-depth cooperation with Nvidia; with the help of Nvidia, Schaeffler intends to map all elements of its production, which will be integrated and simulated as digital twins.

Siemens is also intensifying its cooperation with Nvidia. The main aim is to make factories more efficient with digital solutions. The factories are recreated on the computer and then specifically optimized in the real world. "Together, Siemens and NVIDIA are enabling companies from all industries to fully exploit the scalable potential of AI in the physical world," said Siemens CEO Roland Busch (60).

"In the age of AI, every manufacturer needs two factories: one to make things and one to create the intelligence that powers them," said Nvidia CEO Jensen Huang (62), according to the Telekom press release.

Nvidia boss Huang meets Friedrich Merz

Huang met with German Chancellor Friedrich Merz (69) on Friday to discuss cooperation in building a sovereign AI infrastructure. The US company will work with partners to build data centers specifically tailored to the needs of German industry, the German government subsequently announced.

According to the consulting firm Deloitte, Germany must invest up to 60 billion euros in the expansion of AI data centers over the next five years and triple its domestic computing capacity in order to remain economically competitive and maintain its technological sovereignty.

However, the construction costs for new facilities would be significantly higher than in other European countries. "In addition, electricity prices in Germany are almost twice as high as in the USA, and they account for up to 60 percent of the total operating costs of a data center."

https://www.manager-magazin.de/unternehmen/tech/deutsche-telekom-baut-mit-nvidia-industrielle-ki-cloud-a-c2a0a08e-e7e0-4396-b968-3a0d4661e044

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My dears,

while one CEO sits in the sandbox in a huff. The brilliant Jensen Huang goes on a trip to Europe.

Jensen Huang is coming to Berlin next week to meet German Chancellor Friedrich Merz. The CDU/CSU and SPD want to promote an AI gigafactory in Germany with 100,000 GPUs.

At the end of next week, Federal Chancellor Friedrich Merz (CDU) wants to meet Jensen Huang, the head of the US GPU manufacturer Nvidia, in Berlin. Handelsblatt has learned this from government and industry circles. A meeting with Vice-Chancellor Lars Klingbeil (SPD) is also reportedly planned.

The CDU/CSU and SPD have agreed to build an AI gigafactory in Germany, which is to be powered by 100,000 GPUs.

Nvidia boss Huang is traveling through Europe for most of the week. On Monday, he will first appear at Tech Week in London with UK Minister for Investment Poppy Gustafsson. On Tuesday, he is scheduled to give a keynote speech at the Vivatech technology conference in Paris. According to estimates in industry circles, Huang is likely to announce various initiatives relating to the development of computing infrastructure in Europe during his appearances.

The EU has announced a funding program for the construction of AI Gigafactories, which are suitable for training large language models. In each of the four to five planned facilities, 100,000 or more special data center GPUs are to be used. Nvidia is the market leader here.

SAP, Deutsche Telekom, Ionos and Siemens are planning a joint application to the European Union (EU) for the AI data centers.

Why GPUs are so important for AI and artificial neural networks

GPUs are versatile and ideally suited for parallel computing, as is often the case in AI - but they are also energy-intensive and expensive, reported our author Klaus Manhart. They are most frequently used for training AI models. As this is very computationally intensive, several GPUs are connected together so that they can all train an AI system synchronously.

AI-optimized processors are available from almost all major processor providers. Nvidia - known for its GPUs - has entered the high-end AI market with its Tensor Core GPUs. The core GPUs are an integral part of their AI-optimized GPU architecture and are designed to perform and aggregate matrix multiplications and complex tensor operations as quickly as possible. The latest models accelerate training and inference of large neural networks in data centers.

https://www.golem.de/news/ai-gigafactory-kanzler-merz-trifft-nvidia-chef-in-berlin-2506-196943.html

I am now close to an average payout of €100 per month. Although I am not focused on dividends, this is very motivating and is another personal interim goal that I will soon reach.

The next purchase should therefore be a share that pays a dividend. However, a high dividend yield is not the decisive factor, rather a solid value that, in the best case, regularly increases the dividend.

I am considering expanding an existing position, the current choices are Blackstone $BX (+1.32%) Deutsche Telekom $DTE (+0.26%) or Caterpillar $CAT (+1.13%) .

What do you think of these stocks and which would be your favorite? Or do you have other suggestions, also with reasons?

Thank you in advance!

📅 Key date

➤ June 10, 2025

🔹Only those who on this date $1211 (+1.58%) -shares in the securities account on this date will participate in the distribution.

🎁 Bonus shares (one-off)

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🔹 Credit is made automatically by the broker

📈 Capitalization shares

➤ 12 capitalization shares for every 10 shares held

🔹 Not subject to taxas capital increase from company funds

💵 Cash dividend

➤ RBM 39.74 (approx. EUR 4.86) per 10 shares

🔹 Payment is expected to be made on August 06, 2025

🔹 Not subject to taxas it comes from the substance of the company (as is also the case with the $DTE (+0.26%) is the case)

🧾 Important: Whole 10-unit denomination required!

➤ Distribution (bonus, capitalization, dividend) only for full multiples of 10 shares

➤ Individual shares or odd numbers of shares go away empty-handed - these lose relative value

➤ Accordingly, always round up to a multiple of 10 round up or down!

🔹 The price is adjusted after the distribution adjusted (dilution)

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📊 Stock markets: DAX soaring 🚀

The DAX #dax started today with a strong tailwind! 🎉

• Start: approx. 23,965 points (+1.4 %)
• Midday: around 24,035 points (+1.7 %)

Reason for the good mood? 😎 US President Donald Trump has postponed the threatened 50% tariffs on EU exports by one month. This has brought relief to the markets.

🇺🇸 USA: Stock markets are robust 💪

Optimism also prevails on Wall Street:

• Dow Jones#dowjones Closing price on Friday at 42,654.74 points (+0.78 %)
• S&P 500: approx. 5,955 points (+0.7 %)
• Nasdaq 100#nasdaq100 wa 21,425 points (+0.4 %)

The markets do not appear to be impressed by the latest tariff threats. 📈

📈 Economy: light and shade 🌤️

The German economy is showing mixed signals:

• GDP growth in the first quarter: +0.4% - twice as much as expected! 🎉
• Annual forecast: However, the economic experts only expect zero growth of 0.0% for 2025.

The export sector, in particular pharmaceutical products and automotive parts to the USA, should be highlighted as a positive factor. 🚗💊

🏢 Companies: German companies on the upswing 🌟

According to PwC, German companies have made gains in the global ranking:

• SAP:$SAP (+0.86%) 31st place
• German Telekom$DTE (+0.26%) : back in the top 100 in 73rd place
• Siemens: $SIE (+0.89%) 74th place

A strong signal for the competitiveness of German companies! 💪

🔧 Industry: Hannover Messe with a focus on AI 🤖

Hannover Messe 2025 took place from March 31 to April 4 and set new standards:

• Over 4,000 exhibitors from 60 countries
• Around 130,000 visitors
• Top topic: Artificial intelligence in the industry
• Partner country: Canada

An exciting look at the future of industry! 🌐

⚠️ Data protection: Last chance to object 🛡️

Meta $META (-1.93%) (Facebook, Instagram) plans to use user data for AI training - without explicit consent. 😬

• Deadline for objection: Today, May 26, 2025
• NRW consumer advice center complains, so far without success

If you want to protect your data, you should take action today!

🎯 Conclusion: A day full of dynamism and opportunities 🌈

Today is a day that shows how closely politics, business and technology are interlinked. It remains exciting to see how developments will continue in the coming weeks.

Financial highlights Telekom ($DTE (+0.26%) )

• Revenue29.8 billion, an increase of 6.5% compared to Q1 2024 (organically +3.8%).
• Service revenue: € 24.96 billion, an increase of 6.3 %.
• EBITDA AL (adjusted for special items)11.3 billion, an increase of 7.9%.
• EBIT€ 6.77 billion, an increase of 19.0 %.
• Net result€ 2.85 billion, an increase of 43.5 %.
• Adjusted net result2.44 billion, an increase of 9.1%.
• Earnings per share0.58, an increase of 45.7%.
• Adjusted earnings per share0.50, an increase of 10.8%.

Key balance sheet figures

• Total assets€ 304.98 billion.
• Equity97.78 billion, equity ratio of 32.1 %.
• Net debt131.94 billion €.

Cash flow

• Operating cash flow11.17 billion, an increase of 16.2%.
• Investment expenditure (cash capex)4.48 billion, a decrease of 5.0%.
• Free cash flow (before dividends and spectrum)6.86 billion, an increase of 37.5 %.
• Free cash flow AL (before dividends and spectrum)5.65 billion, an increase of 52.4 %.

Key customer figures (as at March 31, 2025)

• Mobile customers259.9 million, an increase of 1.6% compared to the previous year.
• Fixed-network lines25.2 million, a decrease of 0.6 %.
• Broadband customers22.4 million, an increase of 1.5 %.

Merck backtracks on annual forecast + Deutsche Telekom increases profits significantly + Siemens grows strongly + Mediamarkt parent Ceconomy improves profitability + RWE records losses as expected

Merck $MRK (-0.29%)rows back with annual forecast

• The pharmaceutical and technology group Merck KGaA is lowering its targets for the year due to the recent strong exchange rate fluctuations, for example in the US dollar.
• In addition, the slight adjustment of the forecast in the laboratory business also reflects the "current uncertainties with regard to customs duties", the DAX-listed company announced in Darmstadt on Thursday.
• Nevertheless, Merck remains confident of achieving sustainable growth.
• Management now expects sales for the year as a whole to be in the range of EUR 20.9 to 22.4 billion, compared to the previous forecast of EUR 21.5 to 22.9 billion.
• Earnings before interest, taxes, depreciation and amortization adjusted for special items (adjusted EBITDA) are now expected to come in at 5.8 to 6.4 billion dollars in 2025 instead of the previously targeted 6.1 to 6.6 billion dollars.
• Meanwhile, Merck continued its recovery from a post-corona dip at the start of the year.
• Sales climbed by around three percent year-on-year to 5.28 billion euros, with the Group benefiting from the recovery in the pharmaceutical manufacturing business, particularly in the laboratory sector.
• However, semiconductor materials for AI applications also remained in demand.
• The operating result (adjusted EBITDA) rose by almost six percent to EUR 1.54 billion and exceeded analysts' average expectations.
• Merck earned 738 million euros after taxes, compared to 699 million euros a year earlier.

Deutsche Telekom $DTE (+0.26%)increases profit significantly

• Deutsche Telekom continued to benefit from the growth of its US subsidiary in the first quarter and slightly raised its profit outlook for the year as a whole.
• Thanks in part to the even stronger dollar in the first quarter, the DAX-listed company's revenue increased by 6.5 percent to 29.8 billion euros, as the Bonn-based company announced on Thursday.
• Increasing service revenues in German mobile communications also contributed to this.
• The operating result adjusted for special items (EBITDA AL) rose by 7.9 percent to just under 11.3 billion euros.
• Below the line, special effects in particular led to a significant increase in profit of 43.5 percent to 2.8 billion euros.
• Based on constant exchange rates from the previous year, Deutsche Telekom CEO Tim Höttges now expects an operating result of around 45.0 billion euros and a free cash flow AL of around 20.0 billion euros.
• This is 100 million euros more than before. The reason for this is that the US subsidiary had already slightly increased its forecast due to acquisitions.

Siemens $SIE (+0.89%)grows strongly

• The technology group Siemens grew strongly in the second quarter and performed better than expected.
• The company benefited from robust business in the field of intelligent infrastructure, the Mobility train division and the medical technology subsidiary Healthineers.
• Turnover rose by seven percent to just under 19.8 billion euros at the end of March, as the company announced in Munich on Thursday. Adjusted for currency and portfolio effects, the increase was six percent.
• The result of the industrial business increased by almost 30 percent to 3.24 billion euros.
• Siemens also benefited from the sale of non-core activities at Smart Infrastrucure.
• Order intake grew significantly by ten percent to 21.6 billion euros.
• The Train Division and Siemens Healthineers recorded significantly more new business.
• Incoming orders in the Digitalization division were at the previous year's level.
• There were rays of hope in the automation business, which has been weakening for some time: Siemens recorded significant growth there again thanks to higher demand from China.
• According to Siemens, the excess inventory in the region, which had been persisting for several quarters, was coming to an end.
• In contrast, automation orders in Germany had declined considerably.
• The figures were significantly better than analysts had expected.
• Siemens confirmed its forecast for the current fiscal year.
• The recently completed takeover of the US software group Altair is still not included.

Mediamarkt parent company Ceconomy $CEC (+1.1%)improves profitability

• The Mediamarkt and Saturn parent company Ceconomy has further improved its profitability.
• Adjusted earnings before interest and taxes (EBIT) doubled to ten million euros in the traditionally weaker second quarter, as the retail group announced in Düsseldorf on Thursday.
• "For the ninth time in a row, we are growing sustainably and improving our profitability - proof that our strategy is successful and is being implemented consistently," said interim CEO Kai-Ulrich Deissner.
• The former CFO has taken over the position from Carsten Wildberger, who has moved into politics and is now in charge of the Digital Ministry in the new German government.
• According to the company, it is on course to achieve its medium-term targets.
• "We are focusing on strict cost discipline and adapting quickly to market changes," commented interim CFO Remko Rijnders.
• Turnover fell from 5.3 to 5.2 billion euros in the three months to the end of March.
• Analysts had expected an increase. Adjusted for currency and portfolio effects, Ceconomy achieved growth of 1.3 percent.
• Ceconomy's realignment from a traditional retailer to an omnichannel platform is reportedly progressing.
• Adjusted for currency and portfolio effects, online sales increased by 7.4 percent to just under 1.3 billion euros, accounting for a quarter of total sales.
• Ceconomy confirmed its forecast for 2024/25.

RWE $RWE (+0.56%)records losses as expected

• As expected, the energy group RWE suffered a decline in operating profit at the start of the year.
• Among other things, the DAX-listed company recorded a rather weak start to the year in energy trading.
• Furthermore, weak wind conditions in Europe led to lower wind power production at sea and on land and thus to a drop in earnings, RWE announced in Essen on Thursday.
• The Executive Board confirmed its forecast for the year and operating earnings before interest, taxes, depreciation and amortization (ber EBITDA) fell by 23.5 percent to 1.3 billion euros in the first quarter.
• Adjusted for special effects, net profit even fell by almost 38 percent to just under half a billion euros.
• The results were thus roughly in line with the analysts' estimates made by the company in advance.

Thursday: Stock market dates, economic data, quarterly figures

• ex-dividend of individual stocks
• BMW € 4.30
• Microsoft Corp $0.83
• Unilever PLC £ 0.39
• Shell PLC $ 0.36
• BP PLC £ 0.06
• Exxon Mobil Corp $ 0.99
• GSK PLC £ 0.16

• Quarterly figures / company dates USA / Asia
• 13:00 Walmart quarterly figures
• 13:30 Alibaba Group quarterly figures
• 14:00 Blackrock | Morgan Stanley AGM
• 22:30 AT&T AGM
• No time specified: Applied Materials | Deere & Co Quarterly figures

• Quarterly figures / Company dates Europe
• 07:00 TAG Immobilien | Allianz | Ceconomy | Deutsche Telekom | Merck KGaA
• 07:00 RWE | Siemens quarterly figures
• 07:00 Thyssenkrupp | Aareal Bank | Grenke | Schott Pharma | Südzucker
• 07:00 Thyssenkrupp Nucera quarterly figures
• 07:30 Prosiebensat1 | Talanx | Dermapharm | Douglas | Port of Hamburg
• 07:30 MLP quarterly figures
• 07:50 Engie | Energiekontor quarterly figures
• 08:00 RTL Group | Wüstenrot & Württembergische | Villeroy & Boch | Jost Werke
• 08:00 National Grid quarterly figures | Siemens PK
• 09:00 Thyssenkrupp PK | Ceconomy Analyst Conference
• 09:30 Merck KGaA PK | Siemens Analyst Conference
• 10:00 Aixtron | Commerzbank | Eon | Heidelberg Materials | Hugo Boss
• 10:00 Elmos Semiconductor | Redcare Pharmacy | Just Eat Takeaway AGM
• 10:00 Deutsche Telekom | RWE PK
• 11:00 Borussia Dortmund Quarterly Figures | United Internet AGM | Allianz PK
• 11:00 Thyssenkrupp Analyst Conference
• 11:30 Grenke PK
• 13:00 RWE Analyst Conference
• 14:00 Allianz | Merck KGaA Analyst Conference

• Economic data

08:00 DE: Wholesale prices April

08:00 UK: GDP (1st release) | GDP March | Trade Balance March | Industrial Production March

08:45 FR: Consumer prices April

09:00 FR: ECB Director Cipollone, speech at French payments forum

11:00 EU: GDP (2nd release) 1Q Eurozone FORECAST: +0.4% yoy/+1.2% yoy 1st release: +0.4% yoy/+1.2% yoy 4th quarter: +0.2% yoy/+1.2% yoy

11:00 EU: Industrial Production March Eurozone FORECAST: +1.1% yoy/+2.1% yoy Previous: +1.1% yoy/+1.2% yoy

14:30 US: Initial jobless claims (week) PROGNOSE: 226,000 previous: 228,000 | April producer prices PROGNOSE: +0.3% yoy previous: -0.4% yoy | Philadelphia Fed Index May PROGNOSE: -10.5 previous: -26.4

14:30 US: Retail Sales April PROGNOSE: +0.1% yoy previous: +1.4% yoy Retail Sales ex Motor Vehicles PROGNOSE: +0.3% yoy previous: +0.5% yoy 14:30 US: Empire State Manufacturing Index May PROGNOSE: -9.0 previous: -8.1

15:15 US: Industrial Production and Capacity Utilization April Industrial Production PROGNOSE: +0.1% yoy previous: -0.3% yoy Capacity utilization PROGNOSE: 77.8% previous: 77.8%

16:00 US: Inventories March PROGNOSE: +0.2% yoy previous: +0.2% yoy

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https://www.boerse.de/nachrichten/DEUTSCHE-BANK-RESEARCH-Deutsche-Telekom-buy/37303785?utm_source=perplexity