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(Bloomberg) -- German software developer SAP SE unseated Danish weight-loss drug maker Novo Nordisk A/S as Europe’s most-valuable public company.

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Shares of SAP, which have surged as the Walldorf, Germany-based firm boosts cloud sales with a range of new artificial intelligence offerings, rose as much as 2.3% on Monday. They were up 0.9% at 10:57 a.m. in Frankfurt, valuing the firm at about €312 billion ($338 billion). That tipped it past Novo Nordisk, whose shares have declined 18% this year due to disappointing trials of its next-generation weight-loss shot CagriSema.

SAP shares have risen 40% in the past year, as Chief Executive Officer Christian Klein pushed to accelerate customers’ shift from traditional on-site servers to IT infrastructure on the cloud. That process has allowed the company to sell more lucrative products bundled with AI features, boosting revenue growth.

“SAP is proud to be recognized as Europe’s most valuable company, underscoring the critical role of technology in keeping Europe competitive on the global stage,” a spokesperson for the company said by email. “Our continued investment in cloud, AI, and innovation reflects our commitment to driving digital transformation and long-term growth for businesses worldwide.”

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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.

The company is also insulated from Europe’s economic issues thanks to its major presence in the US, its biggest market. SAP booked €2.9 billion in sales in the US in the fourth quarter, or about 31% of total revenue.

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 growth has put it in a league of its own in Germany, Europe’s largest economy. Last year, the country’s benchmark DAX index raised the single-stock weight cap to 15% from 10% to accommodate SAP. The company’s value has eclipsed the new cap as well, and the index provider in February introduced alternative uncapped versions of the DAX to allow institutional investors to continue to track major German firms.