Telefónica’s Quantum Computing Move With CESGA Could Be A Game Changer For Telefónica (BME:TEF) - simplywall.st

Spain/Telecom Services and Carriers/BME:TEFTelefónica’s Quantum Computing Move With CESGA Could Be A Game Changer For Telefónica (BME:TEF)Simply Wall StReviewed by Sasha Jovanovic January 06, 2026ShareCopy Link In December 2025, IQM Quantum Computers announced a purchase agreement with Telefónica and the Galician Supercomputing Center (CESGA) to install Spain’s first IQM full-stack quantum systems, a 54-qubit Radiance for high-performance computing and a 5-qubit Spark for education, scheduled for delivery by June 2026. This project places Telefónica at the heart of integrating quantum computing with artificial intelligence and high-performance computing in Europe’s research infrastructure, expanding access for scientists and leading companies across multiple sectors. We’ll now examine how Telefónica’s role in deploying quantum systems into CESGA’s supercomputing hub could influence its investment narrative and technology positioning. We've found 14 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.AdvertisementTelefónica Investment Narrative RecapTo own Telefónica, you need to believe its core connectivity and growing digital services can justify today’s valuation despite high leverage and recent losses. The CESGA quantum project supports its technology narrative but looks immaterial for near term financial catalysts or for addressing the company’s biggest current risk, which is its elevated debt burden and the pressure this puts on flexibility, interest coverage and the sustainability of its generous dividend policy. Among recent announcements, Telefónica’s reaffirmation of 2025 earnings guidance and its €0.30 per share cash dividend for 2025 stand out as more immediately relevant for investors than the CESGA quantum agreement. Together with portfolio simplification and ongoing cost efficiencies, these commitments frame how investors might weigh emerging technology projects like quantum computing against the company’s need to improve profitability and protect cash flow. But while Telefónica leans into cutting edge projects, investors should be aware of the continuing risk that its high leverage could... Read the full narrative on Telefónica (it's free!)Telefónica's narrative projects €38.3 billion revenue and €2.2 billion earnings by 2028.Uncover how Telefónica's forecasts yield a €4.51 fair value, a 30% upside to its current price.Exploring Other PerspectivesBME:TEF 1-Year Stock Price Chart Five fair value estimates from the Simply Wall St Community span about €4.51 to €9.24 per share, reflecting very different expectations. You can weigh those views against Telefónica’s high leverage risk and consider how that may shape the company’s room to invest and improve returns over time.Explore 5 other fair value estimates on Telefónica - why the stock might be worth over 2x more than the current price!Build Your Own Telefónica NarrativeDisagree 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 Telefónica research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.Our free Telefónica research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Telefónica's overall financial health at a glance.Want Some Alternatives?Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:Explore 29 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.The latest GPUs need a type of rare earth metal called Terbium and there are only 38 companies in the world exploring or producing it. Find the list for free. 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.Valuation is complex, but we're here to simplify it.Discover if Telefónica might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.comAbout BME:TEFTelefónicaProvides telecommunications services in Europe and Latin America.See The Free Research ReportUndervalued with moderate growth potential.See The Free Research ReportSimilar CompaniesNYSE:ORCLOracleNasdaqGS:NFLXNetflixMarket InsightsThree Sectors Expected to Rally in 2026 📈Stella Ong🤖 AI Companies Hit The Bond MarketRichard BowmanThree Reasons Why REITs Could Rally in 2026 🏘️Richard BowmanAdvertisementWeekly PicksALAlexLovell on Rocket Lab · about 1 month agoEarly mover in a fast growing industry. Likely to experience share price volatility as they scaleFair Value:US$16.25380.9% overvalued69 followersusers have followed this narrative·1 commentusers have commented on this narrative·18 likesusers have liked this narrativeAgricola on Excellon Resources · 25 days agoA case for CA$31.80 (undiluted), aka 8,616% upside from CA$0.37 (an 86 bagger!). Fair Value:CA$31.898.4% undervalued69 followersusers have followed this narrative·10 commentsusers have commented on this narrative·20 likesusers have liked this narrativeFUFundamentallySarcastic on Credit Corp Group · about 1 month agoModeration and Stabilisation: HOLD: Fair Price based on a 4-year Cycle is $12.08 Fair Value:AU$12.6410.4% overvalued11 followersusers have followed this narrative·1 commentusers have commented on this narrative·0 likesusers have liked this narrativeRecently Updated NarrativesBAbactrian on Novo Nordisk · about 1 hour agoA Quality Compounder Marked Down on Overblown FearsFair Value:US$9542.0% undervalued95 followersusers have followed this narrative·8 commentsusers have commented on this narrative·0 likesusers have liked this narrativeYIyiannisz on Etsy · about 22 hours agoEtsy Stock: Defending Differentiation in a World of Infinite MarketplacesFair Value:US$64.459.1% undervalued3 followersusers have followed this narrative·0 commentsusers have commented on this narrative·0 likesusers have liked this narrativeYIyiannisz on Align Technology · about 22 hours agoAlign Technology Stock: Premium Orthodontics in a Cost-Sensitive WorldFair Value:US$154.623.6% overvalued1 followerusers have followed this narrative·0 commentsusers have commented on this narrative·0 likesusers have liked this narrativePopular NarrativesAgricola on Excellon Resources · 25 days agoA case for CA$31.80 (undiluted), aka 8,616% upside from CA$0.37 (an 86 bagger!). Fair Value:CA$31.898.4% undervalued69 followersusers have followed this narrative·10 commentsusers have commented on this narrative·20 likesusers have liked this narrativeALAlexLovell on Rocket Lab · about 1 month agoEarly mover in a fast growing industry. Likely to experience share price volatility as they scaleFair Value:US$16.25380.9% overvalued69 followersusers have followed this narrative·1 commentusers have commented on this narrative·18 likesusers have liked this narrativeANAnalystConsensusTarget on NVIDIA · 10 days agoNVDA: Expanding AI Demand Will Drive Major Data Center Investments Through 2026Fair Value:US$253.0225.6% undervalued1020 followersusers have followed this narrative·6 commentsusers have commented on this narrative·28 likesusers have liked this narrativeTrending DiscussionCACarmine on American Airlines Group · 2 days agomake sense but at the moment of writing it went back up at 15.45 $ from a lower as 10.9 $ some months ago. I do feel the market already factored in the "summer" better businesses months1|0USUser on Rocket Lab · 2 days agoHow likely is RKLT to rise 25% by the launch?1|0STStevenM on Excellon Resources · 3 days agoInteresting analysis, but the price trajectory assumed for the baseline metals is problematic. These assumptions form the foundation for the entire case, and when compared against historical pricing, don’t appear to be grounded in any reasonable precedent. Even accounting for past commodity super-cycles, inflationary periods, or supply constraints, the forecasted pricing for gold, silver, zinc, and lead are well outside what history would suggest is plausible over comparable timeframes. That creates a fragile premise as the conclusions are driven by aggressive inputs rather than underlying market behavior that is realistic. The analysis would be materially stronger if the price assumptions were anchored to historical ranges and prior cycle peaks, with explicit rationale where the model intentionally departs from those patterns. As it stands, the trajectory feels more aspirational than analytical.