Copper Discoveries, AI Chips and Mobile Communications: Power Metallic, Infineon and Deutsche Telekom After the Pullbacks

Power Metallic Mines: Consistently Advancing

Power Metallic Mines is consistently advancing the development of its flagship Nisk project in Québec, Canada. An important milestone was marked in early September with the publication of the first resource estimate for the Lion zone. It comprises 4.145 million tonnes of indicated resources at 3.86% copper equivalent (CuEq) and 0.601 million tonnes of inferred resources at 4.01% CuEq. Around 87% of the tonnage is thus classified as Indicated, representing comparatively high geological confidence and a solid basis for technical planning work.

Another advantage is that 61% of the total resource lies within the conceptual open-pit model, meaning it is close to surface. In addition to copper and nickel, the deposit also contains platinum, palladium, gold and silver. Furthermore, drilling results indicate a further extension of the Lion zone at depth. At a depth of 845 m, the drill intersected a 5.70 m interval grading 14% CuEq.

The Canadians recently commissioned a preliminary economic assessment (PEA). It is intended to examine the Nisk main zone alongside Lion and be available in the first half of 2027. This will then allow more specific statements on capital expenditure, operating costs and potential project returns. Further metallurgical studies are intended to show how effectively the metals can be recovered from the rock. An initial open pit at Lion, subsequent underground mining and the possible incorporation of nickel-rich material from Nisk are also to be examined.

At the half-year mark, Power Metallic had a comfortable cushion of around CAD 22 million in cash to consistently advance the project. The shares are currently trading at about CAD 1.08, giving the company a valuation of around CAD 280 million. In their latest research report, GBC analysts reaffirm their CAD 3 price target, implying nearly threefold upside.

Infineon: A Look at the Next Quarter

Infineon generates revenue from power semiconductors, microcontrollers and sensors for automotive, industrial and digital infrastructure applications. The downtrend has accelerated recently, with broader sector concerns weighing on the stock. The decisive factor will be whether Infineon can translate strong demand from AI data centres into sustainable revenue and earnings growth. In late September, the German company announced a collaboration with Eaton. Infineon will supply silicon carbide semiconductors for power management technology that is also intended for use in AI data centres.

In the third quarter, which ran until the end of June, Infineon generated revenue of EUR 4.172 billion and an adjusted segment result of EUR 797 million. The corresponding margin was 19.1%. For the financial year ended in late September, the Management Board most recently projected revenue of EUR 16.3 billion and adjusted free cash flow of EUR 1.85 billion. The company will publish final full-year results on November 10. Analysts see 50% upside potential for the stock over the next 12 months.

Deutsche Telekom: Is the Competition Manageable?

At Telekom, the focus is on recurring payments for mobile communications, broadband and business customer services. Growth is primarily delivered by its subsidiary T-Mobile US. But this is precisely where considerable uncertainty has recently arisen. SpaceX announced the purchase of additional US spectrum for Starlink Mobile, which could significantly intensify competition. Earlier, not all market participants welcomed the group's plans to merge with its subsidiary.

Operationally, however, things are going well. In the second quarter, revenue rose organically by 3.3% to just under EUR 30 billion. Adjusted EBITDA after lease expenses increased organically by 7.3% to EUR 11.82 billion. For 2026, management expects EUR 20 billion in free cash flow after lease payments and adjusted earnings of around EUR 2.20 per share. This financial strength gives the telecommunications giant enormous flexibility. The ongoing share buyback programme was increased to up to EUR 5 billion. At the half-year mark, net financial liabilities including leases stood at around EUR 138.4 billion. The shares are currently trading at around EUR 25. Analysts set an average price target of just over EUR 36, implying potential upside of 45%.

Conclusion

Power Metallic is on the right track. The next catalysts are new drilling results, metallurgical data and progress on the PEA. Analysts see substantial upside for the share. Telekom is demonstrating operational and financial strength. The decisive factor remains how much the new competition changes the US business. Infineon needs strong growth to avoid disappointing market expectations.