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Barclays and BMO Cut SAP SE (SAP) Price Targets but Remain Bullish

SAP SE (NYSE:SAP) is one of the 15 AI Stocks With Explosive Growth Potential.

SAP SE (NYSE:SAP) is one of the best AI stocks with explosive growth potential. On February 2, Barclays reduced its price target on SAP SE (NYSE:SAP) from $348 to $283 and maintained an Overweight rating on the stock.

This update comes after the company reported fourth-quarter results, which Barclays thinks “were softer.” However, the research firm said the drop in the share price after the results “appeared harsh.” Barclays believes many of the risks are already reflected in the stock’s current price.

Earlier, on January 30, BMO Capital also lowered its price target on SAP SE (NYSE:SAP) from $320 to $245 but kept its Outperform rating on the stock. BMO pointed to the company’s failure to meet its guidance on cloud computing business growth targets in the December quarter. This miss came even though SAP SE’s (NYSE:SAP) management had earlier expressed confidence in meeting or exceeding those targets.

The research firm pointed out that SAP SE (NYSE:SAP) “picked a poor time to miss,” especially as investors are already concerned about AI’s impact on the software industry.

Despite these concerns, BMO is “supportive of SAP’s cloud conversion story,” highlighting the company’s strong retention rate.

SAP SE (NYSE:SAP) is a German multinational software company with a leading position in enterprise applications and business AI. The company is one of the world’s largest providers of enterprise resource planning software.

While we acknowledge the potential of SAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SAP and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Stocks Under $10 to Invest In Right Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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