SAP has emerged as the most valuable company in Europe, driven by a remarkable increase in its stock value and market capitalization.

Currently, Novo Nordisk's market value stands at approximately €310 billion, reflecting a significant decline since mid-2024.

This surge in SAP's stock, which has risen over 150% since late 2022, has also contributed to a 30% gain in the Stoxx 600 Index.

Novo Nordisk's stock has lost about half of its value since reaching a record high in June 2024, primarily due to disappointing results from its next-generation obesity drug, Cagrisema.

The company's transition to a cloud-based business model, moving away from traditional software license sales, has played a crucial role in this growth, particularly in light of the current boom in artificial intelligence.

CEO Christian Klein remains optimistic about SAP's future, especially in the realms of data and business AI, projecting continued revenue growth through 2027 despite concerns about cheaper AI models.

SAP's integration of AI into its business solutions is significant, enhancing core operations and expanding AI-driven features.

Globally, SAP is now ranked 27th in market value, significantly trailing behind Apple's valuation of over three trillion euros, yet it has gained ground relative to other tech companies this year.

Analysts predict a 29% increase in SAP's cloud revenue for 2025, contributing to an overall revenue rise of 13%, with total expected revenue reaching €38.5 billion.

Founded in 1972 by former IBM employees, SAP has successfully transitioned from traditional on-premise software to cloud services, establishing a more predictable revenue model.

SAP's growing influence has even surpassed the automotive sector in the DAX index, prompting Deutsche Börse to adjust the index to reflect this change.

In contrast, Novo Nordisk, which previously held the title of Europe's most valuable company, has seen its market value decline significantly due to increased competition in the weight-loss medication market.