July 8th, 2026 | 07:45 CEST
Despite the World Cup and FIFA Scandal: Mega-Deals at SAP, Adidas Outpaces Rivals, HPQ Silicon Adds Drone Capabilities
The international financial markets are currently offering truly remarkable opportunities, exciting turning points and potential for a rebound. While the software company SAP is radically realigning its corporate structure around artificial intelligence, thereby putting investors' patience to the test, the sporting goods manufacturer Adidas is leaving the competition in the dust, despite all contrary opinions. Not even the German national team's bitter World Cup exit could slow down the Herzogenaurach-based company on the stock market, especially since the ongoing World Cup is generating negative headlines anyway. On Tuesday, FIFA, the world soccer governing body, had to defend itself at length regarding the controversial suspended sentence handed down to US forward Folarin Balogun, after a phone call between US President Donald Trump and FIFA President Gianni Infantino had caused a stir. This incident illustrates just how closely politics, business, and sports are currently intertwined—and how even decisions seemingly unrelated to sports can impact the public perception of major brands like Adidas. Far from the big DAX stage, there is an interesting development at a smaller player from Canada. HPQ Silicon is working on the future of battery technology and innovative drone propulsion systems, securing smart partnerships. It could be on the verge of a breakout based on chart patterns. We take a detailed look at these three stocks and highlight where greater potential may still lie dormant.
time to read: 5 minutes
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Author:
Matthias Schomber
ISIN:
HPQ SILICON INC | CA40444L1031 | TSXV: HPQ , OTCQB: HPQFF , SAP SE O.N. | DE0007164600 , ADIDAS AG NA O.N. | DE000A1EWWW0
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Author
Matthias Schomber
Raised in Giessen, Hesse, Matthias Schomber discovered his passion for the financial markets as early as the 1990s—at a time when stock trading was still largely the domain of true, die-hard traders. After completing his banking apprenticeship, he worked for a private bank there and witnessed the rise and fall of the Neuer Markt firsthand on the trading floor of the Frankfurt Stock Exchange, drawing lessons from the experience that continue to shape his thinking as a trader, author, and trading system developer to this day.
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SAP in the Thick of a Major Transformation
We start with the software heavyweight SAP. The Walldorf-based company is in the midst of a far-reaching transformation and recently landed a prestigious major contract. The Finnish network equipment provider Nokia is placing its full trust in SAP to modernize its enterprise software. In collaboration with Microsoft, the complex IT landscape is being gradually migrated to Microsoft Azure. Such multi-year transformation projects are crucial for SAP, as they ensure reliable, recurring revenue and help retain major industry clients over the long term.
Nevertheless, investor sentiment is currently rather subdued. The share price is currently hovering around the EUR 141 mark. Over the past few months, this has meant a painful loss of over 50% in value compared to the 2025 high of EUR 283.50. Investors are extremely skeptical, as fears are spreading that traditional enterprise software could soon become obsolete due to the rapid development of artificial intelligence. CEO Christian Klein is therefore responding decisively to this pressure by personally taking charge of AI product development through the so-called "Project Fuji." To free up crucial funds for this initiative, a strict cost-cutting program has been imposed across the entire group. The upcoming quarterly results on July 23 may show whether these painful but necessary investments are finally paying off.
From a technical analysis perspective, the stock could accelerate a potential rebound if it breaks above EUR 160. However, we are not there yet; the market is currently still searching for a bottom and assessing whether that bottom is solid enough to support an upward reversal.
Adidas Benefits from a Turnaround
Adidas's sports business offers a contrast to the software world of SAP. Shareholders here recently experienced a shock as the German national team's early exit from the World Cup initially sent the stock plummeting. But the panic did not last long; the share price recovered surprisingly quickly over the course of the day and stabilized at a solid level. The reason for this is likely simple math, as Adidas is exceptionally well-positioned globally.
The company is outfitting not only the German team but a total of fourteen national teams for this tournament. Many of them, such as reigning world champions Argentina and Spain, are still successfully competing for the title. Also noteworthy is its strong position in the key US market. According to reports, Adidas is selling its World Cup merchandise there significantly more successfully than its major US rival, Nike. And that is saying something!
Analysts are also extremely optimistic about the Herzogenaurach-based company. DZ Bank, for example, has raised its fair value estimate to EUR 215 and recommends buying it. With a current price of around EUR 187, the stock has already pulled away significantly from its multi-year low, reached only recently (late March, early April) at EUR 130. Although some technical resistance levels still lie ahead at EUR 190-192, the operational turnaround appears to be in full swing. On the downside, the stock must not fall below the EUR 170 mark; otherwise, there is a risk of retesting the lows.
HPQ Silicon: Rebound and Chart Potential
Anyone still looking for a more speculative addition to their portfolio after considering all these large companies with market capitalizations in the billions may end up at HPQ Silicon. The Canadian technology company focuses on innovative, silicon-based materials, advanced drone propulsion systems, and cutting-edge battery technologies.
HPQ Silicon is closely intertwined with its French partner, Novacium, through a 36.8% strategic stake and holds exclusive marketing rights in North America. The latest news from its operations underscores the pace at which the company is moving.
In mid-June, the company signed a memorandum of understanding with LN Innov and Novacium at the Eurosatory defense trade show in Paris. The goal of this collaboration is to develop an all-electric propulsion platform for drones, designed specifically for the large North American market. LN Innov is already massively expanding its production capacity in France and aims to reach a monthly production rate of 20,000 drone motors by the third quarter of 2026. Shortly before that, in early June, the partners showcased a fully integrated European drone propulsion system at that very same trade show, demonstrating the great potential of their collaboration.
But it is not just in Europe and America. In Asia, too, they are already trying to "think big", as another forward-looking memorandum of understanding was signed with GH Technologies on May 21 at the CIBF battery trade show in China. This involves supplying the Asia-Pacific region with extremely high-performance GEN4 lithium-ion cells. From a strategic perspective, this is a very clever move, as this region accounts for more than 57% of global demand for cylindrical battery cells. HPQ Silicon is thus positioning itself globally in a promising starting position.
From a technical charting perspective, this is also an extremely exciting scenario. The stock is currently trading at around CAD 0.15. On the downside, the share price is further supported by a horizontal support level around CAD 0.14. It feels like a foundation is being laid here for the next big leap.
If the share manages the long-awaited breakout above the resistance levels at CAD 0.17 or CAD 0.18, it could then potentially gain significant momentum. The first realistic target would then be the upper boundary at CAD 0.20.
If the positive news flow from the many partnerships continues and the bulls ultimately take the wheel, prices heading toward CAD 0.23 or CAD 0.24 are conceivable in the medium term. That is precisely where a significant all-time high awaits. Breaking above this level would even clear the path toward CAD 0.30. HPQ Silicon currently combines genuine fundamental potential with an interesting technical risk-reward ratio.
In summary, all three stocks are interesting in their own ways. SAP must prove to the market in the coming months that its massive investments in artificial intelligence are truly paying off and that the prolonged price slide was an emotional overreaction driven by fears that AI would render SAP's business model "obsolete."
Adidas appears to have left the worst of its slump behind. It is benefiting from an extremely broad base in international soccer, which elegantly cushions even minor national setbacks, such as Germany's elimination from the World Cup.
HPQ Silicon, by contrast, is positioning itself as an innovative niche player in future-oriented markets such as drone technology and advanced battery materials. The combination of global partnerships and the current chart pattern makes the stock interesting. Investors with a bit of courage should add this Canadian tech stock to the watchlist, as a technical breakout could provide additional upside momentum.
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