SAP Shares Find Footing on Ericsson AI Win and Sector Rally, Yet Overbought Levels Test the Upside

SAP shares jump 3.12–3.67% as AI wave lifts tech stocks. Ericsson adopts Joule AI, backlog hits €21.9B; overbought RSI signals caution.

A wave of artificial-intelligence optimism swept through global technology stocks on Friday, carrying SAP shares to their best session in weeks. The German software giant closed the day with gains ranging from 3.12% to 3.67%, depending on the data feed, with prices settling between €155.82 and €156.40. The move added to a weekly advance of 2.45% and a monthly gain of 6.86%, but the stock remains deeply in the red over longer horizons: down 22.86% year?to?date and 40.33% over the past twelve months.

The sector?wide rally was ignited by a blockbuster quarterly report from Dell, which surged more than 40% in after?hours trading, and by a bold forecast from Foxconn predicting that global cloud?provider spending on artificial intelligence will reach $700 billion by 2026. SAP was not alone in riding the tailwind: Salesforce jumped 9.08%, Oracle climbed 8.99%, ServiceNow soared 13.46%, and Microsoft added 3.57%. Within the STOXX 50, SAP’s 2.41% advance placed it among the index’s top performers, with the DAX holding comfortably above 25,000 points amid signs of geopolitical easing.

Beneath the macro wave, SAP is building its AI credentials with tangible customer deployments. Ericsson has confirmed that it will roll out SAP’s Joule AI assistant for approximately 85,000 employees, marking what analysts call a critical proof?of?concept. Joule’s deep integration into existing ERP systems gives SAP an edge over rivals like Salesforce, which have struggled to monetise their AI offerings. The cloud?backlog, a forward?looking measure of contractually secured revenue for the next twelve months, stands at €21.9 billion — a figure analysts view as the most reliable gauge of growth momentum.

To reinforce its balance sheet while pursuing an ambitious capital?return programme, SAP placed €3.5 billion in bonds. Proceeds will be used for refinancing and to fund a share?buyback plan that targets up to €10 billion by the end of 2027. The company’s dividend is expected to rise modestly to around €2.67 per share for 2026, compared with the €2.50 paid last year.

Friday’s surge, however, has pushed the stock into overbought territory. The relative strength index stands at 78.2, signalling that near?term gains may be exhausted. Chart watchers see immediate resistance at €159.40 and €159.64, defined by recent session highs, with a breakout through €162.12 potentially opening the path toward €180. On the downside, the critical support zone stretches from €135.44 to €137.54 — a range that includes the 52?week low of €137.62 set in May. The current price sits 13.22% above that low, but still 42.63% below the year’s high of €271.60.

Investors will have the chance to hear directly from management on Wednesday, when CEO Christian Klein speaks at the BNP Paribas Exane CEO Conference in Paris. The fireside chat is expected to offer details on SAP’s AI strategy and its push to simplify internal operations. The next hard catalyst comes on July 23, when the company reports second?quarter results. Until then, the cloud?backlog and the pace of AI?driven customer wins will remain the market’s primary preoccupation.