What Makes SAP (SAP) an Investment Bet?

Aoris Investment Management, a specialist international equity manager, released its “Aoris International Fund” Q3 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets, represented by the MSCI AC World Accumulation Index ex Australia, rose by 6.5% in AUD for the September quarter. In local currencies, gains were 8.0%, but currency fluctuations reduced the AUD return by 1.5%. In the quarter, Portfolio’s Class A (Unhedged) returned -2.6% after fees compared to a 6.5% return for the benchmark. The fund’s Class C (Hedged) declined by 1.0% compared to an 8.0% return for the benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Aoris International 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 3.22%, and its shares lost 1.45% of their value over the last 52 weeks. On December 19, 2025, SAP SE (NYSE:SAP) stock closed at $244.31 per share, with a market capitalization of $285.06 billion.

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

“SAP SE (NYSE:SAP) is the world’s leading enterprise resource planning (ERP) software company, which is an integrated set of applications across HR, finance, manufacturing, supply chain management and customer relationship management. Of the world’s 100 largest customers, 99 use SAP and, remarkably, 77% of the world’s transactions each day touch an SAP system.

We’ve been interested over the last few years in how many companies we admire not only use SAP but also cite SAP as critical to their ongoing efficiency efforts. L’Oréal, Grainger and Cintas all frequently call out their increasing use of SAP’s software as a material contributor to their productivity improvements.

As is the case with many software companies, SAP’s applications are increasingly being hosted in a cloud environment such as Microsoft Azure rather than its customers’ own data centres. As customers transition to the cloud with SAP, their annual spend with the company typically increases 2–3x as they take additional SAP applications to simplify and de-risk their IT infrastructure. On top of this, customers are increasingly adopting SAP’s data analytics and AI tools. While it’s early in the roll-out of these tools, customer interest has been very strong, and we believe this presents a significant earnings opportunity for SAP in the coming years.

As enterprise computing continues its shift to the cloud, we expect SAP to become increasingly relevant to its existing customers and to continue winning new ones, with AI playing a central role.”

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 Magellan Global Fund’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.