How SAP SE’s (SAP) Enterprise Brainstem Shields It from the AI Software Sell-Off

In Bretton Capital Management's Q2 2026 investor letter, the company highlighted SAP SE (NYSE:SAP) as an investment opportunity. SAP SE, headquartered in Walldorf, Germany, is a leading enterprise application and business solutions provider. The company began in 1972 when IBM assigned five German engineers to build an enterprise software package, which the engineers later bootstrapped into their own product.

Today, SAP is the largest enterprise software company in the world, used by giant corporations for various operations, including HR and complex manufacturing.

Bretton Fund reported a one-month return of 22.04% for SAP SE (NYSE:SAP) as of August 24, 2026, while its shares lost 18.97% over the past 52 weeks. The investment management firm noted that SAP SE (NYSE:SAP) is not on their list of the 40 most popular stocks among hedge funds heading into 2026. However, they acknowledged the potential of SAP SE (NYSE:SAP) as an investment but believed certain AI stocks offered greater upside potential and carried less downside risk.