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Barclays Sees Opportunity in SAP SE (NYSE:SAP)’s Weakness

SAP SE (NYSE:SAP) is among the most profitable software stocks to invest in. In a September 30 report, Barclays identified attractive entry points in European technology stocks that have demonstrated weakness, highlighting SAP SE (NYSE:SAP) as a well-positioned name amid current fears regarding the comparative performance of AI-driven peers in the United States. The firm believes that the relative underperformance in the third quarter could serve as a momentum catalyst for many European tech companies.

The bank reiterates its ‘Overweight’ rating on SAP SE (NYSE:SAP), anticipating another robust quarter with core earnings outperforming estimates and sustaining resilience in its cloud backlog.

Separately, the macroenvironment remains favorable, as several German proposals have already been submitted to the EU for developing multi-billion-euro data centers. Federal Digital Minister Karsten Wildberger remains hopeful that Germany will receive at least one of what will possibly be five gigafactories.

Sebastian Steinhäuser, a board member at SAP SE (NYSE:SAP), recently expressed concerns regarding what he calls “misplaced priorities in the German debate over artificial intelligence (AI).” The company’s executive claims that programs are needed that target not only small businesses and workshops but also large enterprises, highlighting the use of AI in day-to-day operations. To intensify competition, he notes that a national initiative for AI training is mandatory.

SAP SE (NYSE:SAP) is a German provider of enterprise application and business solutions offering SAP S/4HANA, SAP SuccessFactors, and SAP customer experience solutions, among others. Incorporated in 1972, the company is a global leader in enterprise solutions and business AI, facilitating companies across various industries to operate seamlessly.

While we acknowledge the potential of SAP to grow, 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 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

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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