Novo Nordisk, Maker of Ozempic, Falls to Second
In a notable market shift, German software giant SAP has overtaken Novo Nordisk to become Europe’s most valuable publicly traded company. This milestone comes just five months after SAP surpassed ASML, the Dutch semiconductor technology leader.
On Monday, SAP’s shares rose by 1.6%, boosting its market capitalization to €313 billion. This increase allowed it to seize the top spot from Novo Nordisk, the Danish pharmaceutical company known for its weight-loss drugs.
SAP’s performance over the past year has been exceptional, with its stock surging more than 40%. This growth is largely driven by strong demand for its AI-powered enterprise resource planning (ERP) solutions. Its cloud-based software consolidates corporate data, streamlining access and collaboration across departments.
In contrast, Novo Nordisk is facing a tougher time in the stock market. Its blockbuster drug Ozempic—endorsed by high-profile figures like Elon Musk—has been a success, but its new obesity treatment, CagriSema, has underperformed in clinical trials. The less favorable-than-expected results triggered a 50% drop in its share price from its 2024 peak.
Novo Nordisk isn’t the only company affected by SAP’s rise. In October, the software firm also overtook ASML to become Europe’s most valuable tech company.
ASML, headquartered in Eindhoven, is a key player in the semiconductor industry, producing extreme ultraviolet (EUV) lithography machines essential for manufacturing the most advanced chips. Its unique market position has made it a favorite among investors.
However, in October, its stock plummeted sharply, wiping €50 billion off its market value in a single day. The drop came after the company reported weaker-than-expected orders for its lithography systems and lowered its 2025 net sales forecast.
This announcement triggered a global sell-off in semiconductor stocks, raising concerns about slowing demand. However, analysts clarified that ASML’s order slump was due more to chipmakers’ excess inventory than a long-term industry issue.
Since then, ASML’s stock has experienced fluctuations. In January, shares jumped by 12%—their biggest gain in nearly five years—thanks to a surge in order bookings. The company now ranks as Europe’s fourth most valuable firm, behind SAP, Novo Nordisk, and French luxury group LVMH.
The volatility of Europe’s top companies reflects the turbulence in global markets, influenced by shifting interest rates, geopolitical tensions, and technological advancements.
By: Nestor Castillo, ForAllTechNews Director
Image credit: Flickr / CC BY 2.0 / Attribution 2.0 Generic