This German software giant becomes Europe's largest company

SAP, a German software company, has overtaken Danish healthcare giant Novo Nordisk to become Europe's largest company by market capitalisation. SAP, Europe's largest software maker, provides critical business application software that companies use for finance, sales, supply chain management, and other essential functions.
According to news agency Reuters, as of Monday (March 24) at 0900 GMT, SAP's market value reached $340 billion, slightly edging out Novo Nordisk.
The company's shares have experienced a significant surge in recent years, largely driven by optimism surrounding its cloud business, which is positioned to be a major beneficiary of the growing investments in generative artificial intelligence (GenAI).
Meanwhile, Novo Nordisk, which had claimed the title of Europe's most valuable company from luxury retailer LVMH in September 2023, has seen its shares underperform in recent months. This downturn followed disappointing trial data for its experimental next-generation obesity drug Cagrisema, which failed to meet investor expectations.

This milestone follows SAP's previous achievement last year when it surpassed ASML Holding NV to become Europe's most valuable technology company.
The Dutch chip-machine maker experienced a dramatic decline in its market capitalisation, losing over 60 billion euros since its announcement of disappointing guidance. ASML cited delays in chip plant construction and lower-than-expected orders as primary factors behind the revised outlook.
ASML’s substantial market value loss, one of the largest one-day declines in European history, created an opening for SAP to reclaim its position as Europe's technology leader.
This change reflects a return to an earlier competitive trend, as ASML last trailed SAP in market capitalization in 2020.