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SAP SE (SAP) Falls to 52-Week Low on AI Threats

By Angelica Ballesteros | January 29, 2026, 11:06 PM

We recently published 10 Stock Titans With Massive Losses. SAP SE (NYSE:SAP) was one of the worst performers on Thursday.

SAP SE fell to a new 52-week low on Thursday, as investors took path from an investment firm’s cautious outlook for the broader software-as-a-service (SaaS) sector amid the potential threats of the rapidly growing AI.

At intra-day trading, the stock dropped to its lowest price of $195.14 before gaining strength towards the close to finish the day at $200.21, or down by 15.20 percent from the previous trading session.

SAP SE (NYSE:SAP) declined alongside its counterparts after JPMorgan raised concerns that advances in AI capabilities could challenge SaaS companies selling subscription-based products, which is currently the listed software provider’s largest revenue contributor.

JPMorgan added that the malaise in software sentiment persists, coupled with a seemingly paradoxical and vicious cycle of depressed valuations, with maintained, if not rising, investor expectations.

Meanwhile, SAP SE (NYSE:SAP) reported strong earnings performance in the full year and fourth quarter of 2025.

From January to December, net income after tax soared by 138 percent to 7.49 billion euros from 3.15 billion euros in 2024, while revenues inched up by 8 percent to 36.8 billion euros from 34.18 billion euros.

In the fourth quarter alone, SAP SE (NYSE:SAP) said that net income grew by 17 percent to 1.9 billion euros from 1.6 billion euros in the same period a year earlier. Total revenues inched up by 3 percent to 9.68 billion euros from 9.4 billion year-on-year.

While we acknowledge the potential of SAP as an investment, 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 extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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