SAP SE’s rise to the top spot underscores the booming demand for cloud computing and AI-driven services.
In a stunning shift in Europe’s corporate landscape, German tech giant SAP SE has dethroned Danish pharmaceutical firm Novo Nordisk as the continent’s most valuable publicly traded company.
SAP SE’s market capitalization soared to €314 billion after a 1.6% rise in its stock on Monday, surpassing Novo Nordisk, whose shares have slumped by 16% this year following disappointing clinical trials for its weight-loss drug, CagriSema.
The surge in SAP SE’s value is largely driven by the rapid migration of clients from traditional servers to cloud infrastructure, a move that has propelled the company’s sales of higher-margin, AI-enhanced products.
Over the past year, SAP SE’s stock has soared by 42%, and analysts predict its sales will increase by 12% in 2025, marking its fastest growth in a decade.
The company’s restructuring plan, announced earlier this year, promises even greater profitability.
As SAP SE thrives, its European peers, like ASML, grapple with supply chain issues and trade restrictions, highlighting the diverse challenges facing the region’s top firms.