Shares of SAP, which have been powered by growing investor optimism over its cloud-based software, rose as much as 2.3% on Monday, valuing it at about €317 billion ($344 billion). That tipped it past Novo Nordisk, whose shares have declined 16% this year due to disappointing trials of its next-generation weight-loss shot CagriSema.

SAP shares have risen 42% in the past year, fueled by an accelerating pivot from traditional on-site servers to IT infrastructure on the cloud. That process has allowed the company to sell more lucrative products bundled with artificial intelligence features, boosting revenue growth.

Analysts on average estimate SAP’s sales will increase 12% this year. If achieved, that would mark the company’s fastest annual growth rate in the past decade. Operating profits are expected to accelerate by even more, following a restructuring program announced in January 2024.

SAP has been the biggest contributor to a 30% gain in the benchmark Stoxx 600 Index since the end of 2022, according to data compiled by Bloomberg. The stock rose more than 150% during that period and was responsible for about 8% of the index’s advance.

SAP’s steady path higher contrasts with other European blue-chip firms that have faced challenges. ASML Holding NV has been grappling with weak orders at some of its key clients, as well as tightening restrictions over chip equipment exports to China.

Novo Nordisk loses top spot in Europe after its shares roughly halved since reaching a record high in June. The stock received another blow on Monday after Intron Health analysts downgraded their recommendation to sell from buy.

LVMH briefly held the title of Europe’s biggest listed firm in January, only for its shares to slip back as part of a broader slide in luxury-goods stocks.