SAP Becomes Europe’s Most Valuable Firm Amid German Stock Market Boom

WALLDORF, GERMANY – Software giant SAP has officially become Europe’s most valuable company, fueled by a surge in artificial intelligence (AI) enthusiasm and strong performance in the German stock market.

By the close of trading on Monday, SAP’s market capitalization reached approximately $342.4 billion, according to FactSet data. The company’s shares rose 1.16% on the day and have gained more than 40% over the past year.

Driving Growth Through AI

SAP, a leader in enterprise software solutions, has leveraged its expansive business data and cloud-based services to enhance AI-driven offerings. The company provides solutions spanning cloud computing, supply chain management, financial analytics, and corporate expense tracking. Analysts believe SAP’s AI-powered advancements will drive further revenue growth as it capitalizes on its vast customer base.

Earlier this month, Bank of America reaffirmed SAP as its top large-cap software stock for 2025, citing “further upside to street expectations on upsell including from AI.” The firm’s analysts emphasized that business cloud migration remains in the early stages and is expected to grow in the coming years.

SAP’s CEO, Christian Klein, described 2024 as “the best year in SAP’s history,” citing cloud revenue growth of 25% year-over-year. The company’s cloud backlog reached €63.3 billion ($68.5 billion) in 2024, highlighting strong demand for its cloud-based services.

“We are sitting on a very rich set of business data—HR data, finance data, supply chain data, sales data—from 40,000 customers,” Klein stated in January. “This gives us the richest business data set of all tech companies.”

AI and Market Dynamics

SAP’s AI tools enable automation across departments such as sales, supply chain, and procurement, making enterprise operations more efficient. The company remains technology-agnostic when it comes to large language models (LLMs), allowing businesses to integrate SAP’s AI solutions without being tied to specific AI frameworks.

SAP’s Chief Financial Officer, Dominik Asam, recently told CNBC that the AI tool launched by Chinese startup DeepSeek—which has influenced financial markets globally—is “good news” for SAP, as it demonstrates the increasing importance of AI-powered business applications.

German Market Surge and Industry Competition

The broader German stock market has also played a role in SAP’s rise. The country’s benchmark DAX index has surged nearly 16% year-to-date, significantly outperforming other European indices such as the FTSE 100 (up 6.6%) and the CAC 40 (up 9.91%). Market sentiment has been buoyed by a substantial fiscal package approved by German lawmakers, which allows for hundreds of billions in government spending on infrastructure, climate initiatives, and defense.

SAP’s ascent to the top dethrones Novo Nordisk, the Danish pharmaceutical firm known for its weight-loss drugs Ozempic and Wegovy. After a period of exceptional growth, Novo Nordisk has faced increased market competition and investor skepticism regarding its future product pipeline. By Monday, its market capitalization stood at approximately $332 billion, trailing SAP.

French luxury conglomerate LVMH, which was Europe’s most valuable company until Novo Nordisk overtook it in late 2023, has also struggled in 2025 due to concerns over slowing demand in the luxury sector.

Looking Ahead

SAP’s strategic focus on AI, cloud computing, and automation positions it for continued growth as companies increasingly rely on digital solutions. With Germany’s stock market rally providing a strong backdrop, SAP appears well-positioned to maintain its dominance in the European corporate landscape.