The German stock index DAX rose 3.38% in August, and optimism about potential interest rate cuts and robust economic indicators boosted market sentiment, especially in the technology sector. In this favorable environment, identifying high-growth technology stocks requires looking for companies that have strong innovation capabilities and solid financial strength to capitalize on the current momentum.

The 10 fastest growing technology companies in Germany

Click here to see the full list of 48 stocks from our German high-growth technology and AI stocks screener.

Below we present some of our favorites from our exclusive screener.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Northern Data AG develops and operates high-performance computing (HPC) infrastructure solutions for companies and research institutions worldwide with a market capitalization of around 1.01 billion euros.

Operations: Northern Data AG’s revenue sources include Peak Mining (EUR 156.13 million), Taiga Cloud (EUR 22.13 million) and Ardent Data Centers (EUR 31.46 million). The company also reports contributions from other companies and corporate functions totaling EUR 46.31 million.

Northern Data’s revenue is expected to grow by 32.5% annually, well above the German market’s 5.3%. Despite a net loss of €151.06 million in 2023, the company reiterated its guidance for fiscal 2024, with expected revenues between €200 million and €240 million. R&D spending was significant, supporting innovations such as Taiga Cloud and Ardent data centers, which are central to its AI cloud computing segment and are expected to drive future growth by up to $16 billion, according to recent IPO talks.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: SAP SE, together with its subsidiaries, offers a range of applications, technology solutions and services worldwide and has a market capitalization of approximately EUR 230.06 billion.

Operations: SAP SE, through its subsidiaries, generates revenue primarily from applications, technology solutions, and services. The company reported revenue of EUR 32.54 billion in these segments.

SAP’s revenue is forecast to grow 10% annually, outperforming the German market at 5.3%. Profit is expected to grow 37.9% annually, driven by significant investments in research and development, which reached €4.5 billion last year. Recent partnerships with companies such as Xerox and Kyndryl underscore SAP’s strength in cloud ERP solutions, particularly through offerings such as RISE with SAP and GROW With SAP. The company also bought back €1.87 billion worth of shares last year, suggesting it has confidence in its growth trajectory despite a one-off €3.3 billion loss that dented recent financial results.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Ströer SE & Co. KGaA offers out-of-home media and online advertising solutions in Germany and internationally with a market capitalization of 3.28 billion euros.

Operations: Ströer SE & Co. KGaA generates revenue primarily in the Out-Of-Home Media (€922.53 million), Digital & Dialog Media (€862.76 million) and Daas & E-Commerce (€357.19 million) segments. The company focuses on providing advertising solutions on various platforms in Germany and internationally and uses both traditional and digital media channels to drive growth.

Ströer SE KGaA’s revenue increased to €511.52 million in the second quarter of 2024 from €454.78 million a year ago, while net profit increased to €32.9 million from €19.38 million, reflecting strong operating performance. The company’s profits are expected to grow by an impressive 29.9% annually, significantly outperforming the German market at 20%. In particular, Ströer has invested heavily in research and development, which contributes to its robust growth prospects and positions the company well in the dynamic technology industry landscape.

Where to now?

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

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