Will Deutsche Telekom’s (XTRA:DTE) AI Cloud Partnership With Nvidia Reshape Its Long-Term Growth Narrative?

• Deutsche Telekom recently reported solid third-quarter 2025 results, raised its full-year profit outlook, announced a higher annual dividend of €1.00 per share, and detailed a major AI partnership with Nvidia to launch a €1 billion industrial AI cloud data center in Germany.
• The company’s collaboration with Nvidia and SAP signals a significant push into AI-driven services, aiming to strengthen its technology leadership and support industrial innovation across Europe.
• We'll explore how Deutsche Telekom's AI partnership with Nvidia could influence its broader investment narrative and long-term growth drivers.

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Deutsche Telekom Investment Narrative Recap

For me, owning Deutsche Telekom hinges on believing in its ability to deliver steady returns through operational discipline, execution in the U.S. market, and successful digital transformation, all while navigating fierce competition and ongoing investment in Germany. The recent raise in full-year profit guidance and the launch of a significant AI partnership bolster key long-term catalysts, but do not fundamentally change near-term dependence on U.S. growth or address exposure to European competitive risk in a material way.

This quarter's expanded AI partnership with Nvidia, backed by a €1 billion investment to build Europe's first Industrial AI Cloud, stands out, clearly reinforcing Deutsche Telekom’s ambition to drive efficiency, innovation, and new revenue streams aligned with its ongoing network and digital transformation catalysts.

By contrast, investors should keep in mind the ongoing risk of persistent competitive pressure in Germany that could …

Read the full narrative on Deutsche Telekom (it's free!)

Deutsche Telekom's outlook anticipates €128.8 billion in revenue and €11.8 billion in earnings by 2028. This is based on a 2.2% annual revenue growth rate and a decrease in earnings of €0.8 billion from current earnings of €12.6 billion.

Uncover how Deutsche Telekom's forecasts yield a €38.07 fair value, a 40% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members’ fair value estimates for Deutsche Telekom range from €33 to €113, with eight viewpoints captured. While many look to future AI-driven margin upside, tougher competition at home still shapes the bigger picture for earnings and cash flow. Explore these alternative viewpoints for deeper insight into what this could mean for you.

Explore 8 other fair value estimates on Deutsche Telekom - why the stock might be worth just €33.00!

Build Your Own Deutsche Telekom Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Deutsche Telekom research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Deutsche Telekom research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Deutsche Telekom's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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