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SAP SE’s (SAP) Cloud Growth Underpins Long-Term Outlook, Morgan Stanley Stays Bullish

SAP SE (NYSE:SAP) is among the most fantastic stocks every investor should pay attention to. A vote of confidence came in for SAP on October 31, after Adam Wood, an analyst from Morgan Stanley, reaffirmed his bullish stance for the stock with a Buy rating and raised his price target from €295 to €300. The analyst lists SAP among his top picks, emphasizing that the company’s competitive positioning remains solid and continues to see strong growth potential.

SAP’s stock has gained around 3.5% year-to-date and has underperformed the broader STOXX Europe 600 and S&P 500 indices, which have gained over 14.2% and 16.5%, respectively. Wood said that this underperformance is partly driven by investors’ concerns over macroeconomic conditions and worries over AI adoption and broader growth. He, however, argues that these concerns are overstated and that SAP’s fundamentals remain intact, which he believes are supported by the company’s ongoing transition to its S/4HANA cloud platform.

Wood further projects that SAP SE (NYSE:SAP) could potentially double its earnings per share by 2030, underscoring a robust long-term earnings outlook.

On the fundamental side, the company reported its Q3 2025 results on October 22, stating that its revenue in the quarter grew 11% year-over-year to €9.1 billion in constant currency (cc) terms. However, the spotlight was on the cloud side of the business, as total cloud revenue rose 27%, with Cloud ERP Suite revenue surging 31%. Moreover, the current cloud backlog also rose 27% (in cc) to €18.84 billion.

On the strong results, CEO Christian Klein stated –

“SAP delivered a great Q3 with strong cloud revenue growth of 27%. We are gaining market share as our customers are adopting solutions across the entire Business Suite, including Business Data Cloud and AI at accelerated pace. For Q4 we are executing against a strong pipeline – which gives us confidence in our accelerating total revenue growth ambition for 2026.”

SAP SE (NYSE:SAP) develops enterprise software that helps organisations manage finance, supply chains, HR, procurement, and customer operations. Its cloud portfolio, including SAP S/4HANA, supports digital transformation and real-time data management.

While we acknowledge the risk and potential of 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 and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  13 Best Stocks to Buy According to Citadel LLC and Goldman Sachs Defense Stocks: Top 10 Stocks to Buy.

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

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

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.

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Two years ago, Wall Street wrote off British American Tobacco (BTI) as a “melting ice cube.” The stock had crashed 40% from its peak, and consensus said the business was dying.

We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

While the market panics over a surface-level revenue decline, our PhD-led research shows management has actually surgically cut $100 million in waste to focus on high-margin growth.

This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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