German giant SAP has officially become Europe’s most valuable company, overtaking Danish pharmaceutical giant Novo Nordisk, thanks to a surge in market capitalization amid interest in artificial intelligence.
As of the morning of March 24, 2025, SAP’s market capitalization had reached $340 billion, surpassing Novo Nordisk, according to Reuters calculations. While SAP shares have “only” risen 7% since the beginning of the year (versus 8.3% for the STOXX 600 index), the company’s total return since the end of 2022 has been an impressive 160% – versus 28% for the index. This growth is attributed to expectations for a breakthrough in cloud technologies and the use of generative artificial intelligence.
While Novo Nordisk shares, despite the success of Ozempic, lost momentum after disappointing test results of the new drug Cagrisema, SAP strengthened its position against the background of global IT optimism. For the company, which supplies software for finance, logistics and supply chain management, this is a strategic leap forward.
SAP is a leading European company in the field of business software, in particular ERP systems. The company is actively implementing cloud solutions and investing in artificial intelligence, in particular in the field of automation of corporate processes. Novo Nordisk, in turn, led the European market last year due to global demand for drugs to combat obesity, but recent clinical failures have reduced investor interest.
The change in the leader among European companies indicates a rapid shift in investor focus from pharmaceuticals to digital technologies, in particular artificial intelligence and cloud computing. SAP can further strengthen its position if it continues to capitalize on the growing demand for AI solutions.
122 
109 
112 