SAP SE (SAP) Slid Amid Concerns Over Disruptive Potential of AI

Magellan Asset Management, an investment management company, released the third quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 7.3% in the September quarter. The portfolio underperformed the index in the quarter due strong performance of more speculative companies in the risk-on environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Magellan Global Fund highlighted stocks such as SAP SE (NYSE:SAP). SAP SE (NYSE:SAP) is a leading enterprise application and business solutions provider. The one-month return of SAP SE (NYSE:SAP) was 2.48%, and its shares lost 3.21% of their value over the last 52 weeks. On December 12, 2025, SAP SE (NYSE:SAP) stock closed at $242.98 per share, with a market capitalization of $285.666 billion.

Magellan Global Fund stated the following regarding SAP SE (NYSE:SAP) in its third quarter 2025 investor letter:

“The largest detractors to the portfolio’s performance over the quarter were Chipotle Mexican Grill, Intuit & SAP SE (NYSE:SAP). SAP faced headwinds amid market concerns regarding the disruptive potential of AI. While we acknowledge the validity of some concerns, we believe the market’s reaction has been indiscriminate with SAP well-positioned as the market leader in the highly defensible Enterprise Resource Planning (ERP) category, while also benefiting from the tailwind of accelerating cloud adoption.”

SAP SE (SAP)’s Strategic Pivot Drives Optimism - JPMorgan Reaffirms Overweight Rating

SAP SE (NYSE:SAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the third quarter, which was 32 in the previous quarter. While we acknowledge the risk and potential of SAP SE (NYSE:SAP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SAP SE (NYSE:SAP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered SAP SE (NYSE:SAP) and shared Polen International Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.