SAP SE, a German software developer, has surpassed Novo Nordisk A/S, a Danish weight-loss drug manufacturer, as Europe's most valuable publicly traded company. The rise in SAP's shares, driven by positive investor sentiment in its cloud-based software, pushed its market value to about €317 billion ($344 billion), up 2.3% on Monday. On the other hand, Novo Nordisk's shares dipped 16% this year due to disappointing trials of its new weight-loss injection, CagriSema.

SAP's stock has seen a 42% increase in the past year, largely due to its shift from traditional on-site servers to cloud-based IT infrastructure. This transition has enabled SAP to offer more profitable products with artificial intelligence features, leading to revenue growth. Analysts predict a 12% rise in SAP's sales this year, marking the company's fastest growth rate in a decade. Operating profits are also expected to rise following a restructuring program initiated in January 2024.

SAP's performance has been a significant driver behind the 30% increase in the Stoxx 600 Index since the end of 2022, with its stock climbing over 150% during that period, contributing 8% to the index's overall gain. Conversely, other European blue-chip companies like ASML Holding NV have faced challenges such as weak orders and export restrictions to China.

Novo Nordisk lost its top position as its shares nearly halved since a record high in June. The stock experienced a further decline following a downgrade from Intron Health analysts to a sell recommendation. LVMH briefly held the title of Europe's largest publicly listed company in January but faced a setback in share value amid a broader decline in luxury goods stocks.