March 13th, 2026 | 07:05 CET
The focus is now on critical infrastructure – Power Metallic Mines delivers dream results, SAP and Oracle test the rebound
Every day, a flood of news hits the capital markets. The focus is on international crises, which in turn have major implications for national economies. Areas with large fossil fuel reserves are coming to the fore, and for months now, scenarios of critical metal shortages have been discussed and reassessed accordingly. High-tech and AI stocks thrive on a steady influx of computing power and are dependent on the promised expansion of the electrical infrastructure. This requires a variety of raw materials from the metal sector. Power Metallic Mines has positioned itself perfectly in the current situation with its NISK project, while Oracle and SAP are driven by their cloud and data models, which are falling out of favor due to AI. It remains to be seen whether a revival in earnings can take place in line with analysts' estimates. It is not easy to convince people, so we are analyzing the accompanying circumstances.
time to read: 4 minutes
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Author:
André Will-Laudien
ISIN:
POWER METALLIC MINES INC. | CA73929R1055 | TSXV: PNPN , OTCBB: PNPNF , SAP SE O.N. | DE0007164600 , ORACLE CORP. DL-_01 | US68389X1054
Table of contents:
"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
Author
André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
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Power Metallic Mines – Lion Zone delivers high-grade results with polymetallic potential
Like a spider in its web, Power Metallic Mines is increasingly establishing itself as a key player in North America's supply chain for strategic metals that are essential for the energy transition, electromobility, and digital infrastructure. The Québec region offers political stability, efficient permitting processes, and existing infrastructure, facilitating entry into large-scale polymetallic projects. With its recent expansion around the Nisk area, the company now controls a contiguous land package of approximately 330 km² and approximately 50 km of potential basin margins. Ongoing drilling campaigns, including over 65,000 meters of exploration, aim to further refine the deposit structure and upgrade the resource category to Indicated Level. Recent results from the Lion Zone show impressive grades: copper up to 15.11% CuEq, nickel and precious metals in economically relevant concentrations, combined with metallurgical recovery rates well above previous expectations. This significantly increases economic viability, as more usable material can be extracted from each ton of ore.
Strong financial backing and modern exploration technologies enable the simultaneous development of multiple target areas. Strategic investors such as Robert Friedland, Rob McEwen, and Gina Rinehart underscore their confidence in the long-term value creation of the projects. Political and fiscal conditions in Québec further contribute to the attractiveness, while projected nickel and copper shortages from 2027 onwards increase the potential for a sustainable market presence. Work is now continuing west and east of the Lion Zone, with the results of the 2026 winter program confirming the high reproducibility of the deposits and supporting the planned preliminary economic assessment (PEA).
The current market value of around CAD 250 million reflects the still moderate valuation and indicates significant upside potential. The analyst consensus is currently CAD 2.44 – some updates are still pending. This could be even higher in the medium term, which is why prices around CAD 1.17 are a bargain! Stay tuned!
Duncan Roy (VP IR) gave an overview of the current status of exploration work in Québec at the 18th International Investment Forum (www.ii-forum.com) in February.
SAP – Analysts are finally becoming more positive
The SAP Group is aware of its dependence on the growing cloud business and has been struggling in the market for months. In its latest quarterly and annual figures, the Walldorf-based company fell slightly short of high expectations, with growth in the current cloud backlog of around 25% year-on-year well below whisper estimates. For fiscal year 2025, cloud revenue rose by around 23% to approximately EUR 21.0 billion, making it the biggest upward move. Total revenue rose by 8% to EUR 36.8 billion, meaning that the data business now accounts for almost 60% of the group's performance. In terms of earnings, there is no cause for complaint, as profit reached EUR 10.4 billion or EUR 6.10 per share. This means that the stock is currently trading at EUR 166 with a 2025 P/E ratio of 27. According to analysts on the LSEG platform, earnings per share will rise to EUR 7.19 and EUR 8.42 in 2026/2027, respectively. SAP shares would then be valued at a 2027 P/E ratio of 19.5 – a historic low! Sentiment is currently improving again because SAP has launched a buyback offensive of up to EUR 10 billion and is hoping for strong cloud and AI business in the medium term. Analysts on the platform calculate an average price target of EUR 245, with 27 out of 36 experts giving it the thumbs up! For risk-conscious investors, the motto here is: buy when the cannons thunder – currently at EUR 166.20!
Restructuring and AI investments shape Oracle's new growth strategy
Similar confusion exists at Oracle. The company's latest quarterly results and strategic announcements have sparked intense discussion among analysts. Many market observers see the figures as confirmation that the massive investment strategy in artificial intelligence and cloud infrastructure is beginning to bear fruit. The fact that revenue and profit recently exceeded expectations was viewed particularly positively, dispelling doubts about the profitability of the high investments. Demand for computing power for AI applications is driving the cloud business in particular, with Oracle's cloud infrastructure recently growing significantly faster than many other areas of the company.
A key factor in the valuation fantasy is the company's enormous order backlog. Remaining performance obligations rose by more than 300% within a year to around USD 553 billion, providing exceptionally high visibility for future revenues. Many analysts interpret this development as a sign that large technology companies are signing long-term contracts for AI computing power. At the same time, it is emphasized that Oracle has raised its revenue forecast for fiscal year 2027 to around USD 90 billion, exceeding previous market expectations. For many analysts, this forecast confirms the assumption that the boom in AI data centers could continue for several more years. Positive votes are thus increasing on LSEG, with research houses UBS and JPMorgan setting targets of USD 250 and USD 210, respectively, in the market, while the consensus is USD 245. Speculative investors can currently buy at USD 167 – around 50% upside potential for the brave!
Artificial intelligence, critical metals, and fossil fuels – this is the linchpin of the various thrusts of current stock market trends. Sometimes this way, sometimes that way! Only traders are likely to succeed in riding the weekly trend changes. For medium-term investors, however, solid stocks such as Power Metallic Mines, SAP, and Oracle offer the certainty that significantly higher prices are possible in just a few months after the sharp corrections.
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