In recent months, the dominant narrative has been that artificial intelligence threatens to devalue traditional software, leading to a wave of sales in the tech sector. However, not all companies face the same risk. According to a recent report from Bank of America, SAP is a clear example of a disproportionate market reaction. SAP's shares, the German enterprise software giant, have fallen nearly 30% in the last six months, driven by fears that generative AI will render classic industry models obsolete. However, Bank of America warns that the market is mixing real risks with hasty conclusions. "The discourse that AI will end software has prevailed in the last six months," the report states, but clarifies that not all companies are equally exposed. The problem, according to the entity, is that the massive sell-off has penalized even companies with strong competitive advantages, like SAP. Frederic Boulan, an analyst at Bank of America, highlights that the key difference lies in data and integration. "Not all software companies face the same risks from AI," he explains. "Industry experience and integration into critical processes are difficult barriers for new competitors to overcome." SAP not only sells software but also manages essential processes for thousands of companies in areas such as finance, logistics, human resources, and operations. This position gives it access to structured and high-value data, something that generalist AI models cannot match. Far from viewing AI as a threat, Bank of America argues that SAP is well-positioned to turn it into a growth lever. The company has made applied artificial intelligence in business the core of its strategy, integrating these capabilities into its platforms. "We expect SAP to benefit both in revenue and efficiency," Boulan states, emphasizing the company's ability to develop high-value AI agents thanks to its customer base and historical data. The report also focuses on stock valuation. According to Boulan, SAP's current price reflects an excessively pessimistic scenario. If growth forecasts for 2026-2030 (around 11% annual revenue growth and 15% in EBIT) are maintained, the market would be discounting a 3% annual revenue decline after 2030 and a 20% long-term EBIT drop. For this scenario to occur, a significant increase in customer loss and a halt in cloud migration would be necessary, something the analyst considers unlikely. In this context, Bank of America maintains its buy recommendation on SAP and sets a target price of $308, representing a potential revaluation of 56% from current levels. The message is clear: the market is treating SAP as if it were a direct victim of AI, when in reality it could be one of the major beneficiaries of its adoption in the business environment. Artificial intelligence will transform the software sector, but not uniformly. There will be losers and winners. For Bank of America, SAP is in the winners' group. In a market marked by fear, opportunity may lie where it is least expected. And today, according to analysts, that place is SAP. (Source: bolsamania.com)