SAP Overtakes Novo Nordisk to Become Europe’s Most Valuable Company

German tech giant SAP climbs to the top, boosted by cloud growth and AI momentum

SAP has officially become Europe’s most valuable company, overtaking Danish pharmaceutical heavyweight Novo Nordisk after a stellar 40% rally in its share price over the past year.

On Monday, SAP’s shares rose by 0.8%, pushing its market capitalisation to more than €312 billion, just ahead of Novo Nordisk, whose shares fell by 2%.

This marks a major milestone not only for SAP but also for Germany’s booming stock market, as investors continue to back tech over traditional sectors.

SAP’s Surge: Cloud and AI Power Growth

Investors are clearly impressed by SAP’s successful pivot to the cloud and its growing investments in artificial intelligence (AI). Once known primarily for on-premise software, SAP has transformed its business model, shifting towards cloud-based subscription services that generate steadier and more predictable revenue.

Analysts expect the company’s cloud revenue to grow by 29% this year, with overall revenue forecast to reach €38.5 billion, up 13% year-on-year.

Adding to the momentum is SAP’s newly launched product, which allows customers to combine their data with third-party sources and analyse it using AI-powered tools—a move seen as a strong play in the competitive enterprise software space.

Novo Nordisk Loses Steam

While SAP climbs, Novo Nordisk is facing challenges. Once Europe’s stock market darling thanks to the runaway success of its GLP-1 anti-obesity drugs like Ozempic and Wegovy, the Danish firm has struggled in recent months.

Its share price has slumped by 50% since last summer, with the latest blow coming from disappointing trial results for its next-generation treatment, CagriSema. The uncertain product pipeline is now casting doubt over whether Novo can maintain its leadership in the weight-loss drug market.

SAP Now DAX’s Heavyweight

SAP’s dominance has reshaped Germany’s DAX index. The company now outweighs traditional German titans like Volkswagen and Mercedes-Benz. In fact, SAP has repeatedly breached the index’s 15% cap, prompting Deutsche Börse to introduce a new uncapped version of the DAX to better reflect the company’s influence.

Founded in 1972 by five ex-IBM engineers, SAP is headquartered in Walldorf, south-west Germany. It is now also Europe’s largest technology firm, having overtaken Dutch chip equipment maker ASML last year.

Conclusion: Tech Triumphs as SAP Takes the Crown

SAP’s rise to the top is a testament to how tech and innovation are reshaping Europe’s corporate landscape. With strong cloud revenue, growing AI capabilities, and strategic product development, SAP is not just leading in valuation—but also in vision.

As Novo Nordisk navigates product uncertainties, SAP’s steady climb shows that a focused digital transformation can win big in today’s markets.

Sources: (FT.com, Copilot)