10 Buzzing AI Stocks on Latest News and Ratings

8. SAP SE (NYSE:SAP)

Number of Hedge Fund Holders: 36

SAP SE (NYSE:SAP) is a leader in ERP software that leverages artificial intelligence to enhance its enterprise resource planning (ERP) solutions. On January 17, TD Cowen analyst Derrick Wood upgraded the rating on SAP SE to “Buy” and raised its price target to $305 from $240. TD Cowen holds a generally positive outlook for SAP SE for numerous reasons. For starters, the firm’s analysts quote the company’s resilience in stock appreciation and growth execution, particularly in Cloud ERP. They also anticipate this performance to remain consistent in the coming years. The optimism is further supported by survey data which demonstrates a growing priority for Cloud ERP, with artificial intelligence helping them migrate faster.

The firm also noted that SAP is gaining from artificial intelligence in two ways. First, it is helping businesses migrate to Cloud. Second, it is monetizing from generative AI solutions. The firm’s 2025 Software Spending Survey revealed that ERP jumped four spots in ranking for SaaS spend priorities for 2025, which now places it third out of eleven categories. The company is also performing better in the mid-sized business market and demonstrates a healthier growth outlook for 2025. SAP SE is experiencing accelerated Cloud growth, and is anticipated to reach a five-year high. Lastly, a favorable foreign exchange environment is further anticipated to enhance growth prospects and valuations.