Artificial SAP-ienceSAP SETRADEGATE:SAPbalinorPreliminary Info SAP sells enterprise resource planning software, known as ERPs, which serve as the actual central nervous system to coordinate accounting, human resources, logistics, and sales for any large organization within a single digital environment. In recent years, the company has transformed its business model, shifting from selling single licenses to Cloud subscription contracts. It is precisely this transition that guarantees solid and predictable revenue growth for the coming years. Indeed, the mass migration of its massive legacy customer base to Cloud services generates recurring and stable cash flows that are recording consistent double-digit increases. This is supported by a backlog of future contracts already signed exceeding €21 billion, which secures long-term revenues. Added to this dynamic is the integration of "Business AI" into its operational software. This allows SAP to increase the average contract value through the upselling of advanced artificial intelligence features, thereby enabling global revenue to expand rapidly thanks to a unique combination of guaranteed renewals and new high-margin revenue streams. +++++ Analysis The price dropped by 50%, hitting the €140 support level following the wild sell-off that hit the entire software sector due to fears surrounding the impact of AI. In addition to the support level, the price also reached the Monthly SMA100 (green line), where it has been hovering for a couple of months. At the moment, a reversal pattern has not yet formed, but I believe a recovery is imminent. +++++ My Personal Take In my opinion, this hoax about AI causing software companies to go bankrupt is just manipulated news designed to push the sector's leading giants down to their lows. These companies hold hundreds of patents and confidential databases stored in proprietary formats… it is far more likely that these very companies will reap the greatest benefits from using AI in the coming years. This is the best time to take a position before takeoff. Updates to follow. If you appreciate my insights, please leave a like