Yazılar

European AI Adopter Stocks Slide as Powerful New Models Spark Investor Caution

/in /tarafından

Shares of European companies investing heavily in artificial intelligence have faced a sharp selloff this week, as the emergence of more advanced AI models raises concerns about potential disruption across software, data analytics, and financial services sectors.

European software stocks, including Germany’s SAP (SAPG.DE) and France’s Dassault Systèmes (DAST.PA), fell sharply on Tuesday following a downgrade of U.S. rival Adobe (ADBE.O) by broker Melius Research. Since mid-July, shares in London Stock Exchange Group (LSEG.L), UK software firm Sage (SGE.L), and French IT consulting company Capgemini (CAPP.PA) have dropped 14.4%, 10.8%, and 12.3%, respectively.

These companies—often labeled AI adopters—have invested heavily in AI to enhance products and services, attracting investor interest amid a shortage of European AI suppliers. However, the release of more powerful AI models, such as OpenAI’s GPT-5 and Anthropic’s Claude for Financial Services, has prompted a reassessment of their long-term competitiveness. Kunal Kothari of Aviva Investors noted that each new AI iteration challenges the business models of data providers like LSEG.

While the broader European markets have posted modest gains—FTSE 100 up 2.5% and STOXX 600 up 0.6% since mid-July—high valuations have made AI adopter stocks particularly vulnerable. SAP trades at around 45 times earnings, compared with a STOXX 600 average of 17.

Investors are debating whether AI will “eat software,” as Nvidia CEO Jensen Huang famously predicted. Analysts caution that not all software companies are equally exposed. Firms with deeply embedded enterprise applications or proprietary data may retain a competitive edge. For example, UK credit data company Experian (EXPN.L) and Sage benefit from extensive integration into client workflows, making them less vulnerable to disruption.

Some experts view the selloff as a buying opportunity, noting that affected companies could leverage AI to boost earnings over time. However, market watchers warn that proving tangible returns from AI investments may be a race against the clock for major European software players.

Manufacturers Turn to AI to Manage Supply Chains Amid Tariff Volatility

/in /tarafından

U.S. manufacturers like The Toro Company are using artificial intelligence to maintain lean “just-in-time” inventories despite ongoing global trade uncertainties and fluctuating tariffs. Toro’s supply chain chief, Kevin Carpenter, says AI helps the company process daily news—from policy updates to commodity prices—into actionable insights, guiding purchasing and inventory decisions.

Generative AI is being increasingly adopted in supply chains, capable of analyzing massive datasets and suggesting optimal actions. Industry research firm Gartner predicts AI software spending for supply chains could rise from $2.7 billion today to $55 billion by 2029. Leading providers include SAP, Oracle, Coupa, Microsoft, and Blue Yonder.

While AI improves efficiency and helps manage cost pressures, experts caution it is not a “silver bullet.” Human oversight remains essential for strategic decisions, with AI handling routine tasks like scheduling and ordering. Companies using AI can better react to uncertainty, reduce excess inventory, and protect profit margins amid rising costs and global disruptions.

German Firms to Submit Separate EU Bids for AI Data Centre, Report Says

/in /tarafından

Several major German companies — Deutsche Telekom, Ionos, and the Schwarz Group’s IT subsidiary — plan to submit separate bids to the European Union for funding to build an AI data processing centre, according to Germany’s Tagesspiegel newspaper.

The European Commission has announced plans to allocate $20 billion to support the construction of AI data centres aimed at helping Europe catch up with the U.S. and China in artificial intelligence capabilities.

Under the current German government coalition agreement, Chancellor Friedrich Merz’s conservative party and the Social Democrats have prioritized having at least one of these AI centres located in Germany.

In May, Deutsche Telekom revealed it had partnered with SAP, Ionos, and the Schwarz Group to jointly seek EU funding for an “AI gigafactory” — a specialized facility designed to meet the massive computing demands of AI. However, the Tagesspiegel report noted that SAP is no longer involved in the bid.

SAP did not comment on the bidding process itself but said it is not pursuing a role as operator or investor in AI gigafactories. Instead, SAP aims to contribute as a technology and software provider to future AI data centre projects in Germany and Europe.

Ionos told Reuters that the expression of interest being submitted to Brussels this Friday is an initial step, with a formal application planned later this year alongside partners.

The Schwarz Group declined to confirm whether it will submit a separate bid, stating that if a German consortium is formed, all relevant parties will be invited to contribute to creating the fastest, most reliable, and most convincing AI gigafactory.

Deutsche Telekom did not respond to Reuters requests for comment.