SAP Shares Extend Rally as Google Cloud and Nvidia Endorse AI Strategy

SAP shares climb 3.81% as deepening Google Cloud partnership and Nvidia CEO's praise fuel rotation from chips to software. Technical breakout above 100-day MA sets stage ahead of Q2 earnings.

The pivot from pure-play chip stocks into software names gathered pace in Frankfurt on Thursday, lifting SAP to the top of the Dax. The Walldorfer group’s shares jumped as much as 4.16% to €162.76 on one platform, before settling at €162.22, a 3.81% advance, according to another. That marked the seventh consecutive session of gains, compounding a total rise of 7.89% over the period.

Two distinct catalysts drove the momentum. First, SAP deepened its partnership with Google Cloud, integrating Gemini models into its software to actively manage global supply chains rather than merely monitor them. The move underscores how the company is embedding artificial intelligence directly into its cloud offerings — a strategy that market observers believe will accelerate monetisation of those services. Second, Nvidia CEO Jensen Huang publicly praised SAP’s AI potential during a Computex appearance in Taipei, calling the group a strategic partner for the next wave of enterprise AI. The endorsement from the chipmaker’s chief resonated strongly with investors in Frankfurt, reinforcing the sector rotation argument.

Technically, the breakout above the 100-day moving average at €161.79 is a significant milestone. The 50-day line, now at €148.77, lies 9.41% beneath the current price, while the 200-day average at €189.96 remains 14.32% above — a reminder of the distance still to cover. The 14-day relative strength index stands at 59.2, constructive but not yet overbought, suggesting room for further upside. Yet the annualised 30-day volatility of 44.41% warns that turbulent sessions are likely to persist. Analysts see a technical corridor between €127 and €177 as the key range for the weeks ahead.

Despite the relief rally, the longer-term picture is bruised. Year-to-date, SAP stock is down roughly 20% — 19.43% to be precise — and on a 12-month view the loss is 40.02%. The all-time high of around €271 remains a distant memory, and the 52-week low of €135.52, touched on May 13, is still only 20.10% below the current level. That low seems to have marked a temporary floor, but the recovery is fragile.

The next fundamental test comes on July 23, when SAP reports second-quarter results. Before that, the market will be watching how the “Autonomous Enterprise” strategy unveiled at the Sapphire conference gains traction. That vision — SAP’s answer to the AI transformation in business software — will determine whether the current bounce can evolve into a sustained uptrend, or whether it remains a mere technical snapback in a volatile, rotation-driven market.