European technology stocks experienced dramatic gains Wednesday as investors rushed to buy shares in companies positioned to profit from the growing artificial intelligence investment wave, following strong earnings reports and record-breaking performance by their American counterparts.
ASM International, which manufactures computer chip equipment, saw its stock price jump 9% to reach an all-time high after the company projected second-quarter sales far exceeding what market analysts had anticipated, with experts pointing to strong AI-related demand driving the optimistic forecast.
Swiss engineering firm ABB also reached a new stock price record after increasing its annual outlook, stating that surging demand from data centers and other electrification business segments helped counterbalance growing concerns related to the Iran conflict.
The impressive performance of European semiconductor companies and other firms expected to benefit from AI infrastructure development follows similar success seen in the Philadelphia SOX index, which serves as the primary U.S. benchmark for the technology sector.
That American index has posted gains for 15 straight trading sessions—marking the longest winning streak since at least 2014—climbing 35% during that timeframe, representing its best performance in approximately 24 years.
Investment bank Barclays noted that an extended period of weak investment activity in developed markets is now shifting toward an AI-driven recovery, boosting demand for semiconductors and supporting infrastructure.
The British bank anticipates investment growth will accelerate starting in 2026 as artificial intelligence projects expand, combined with increased spending on defense, energy security and supply-chain protection.
“While AI spending has lifted U.S. corporate capex cycle higher, investments are yet to pick up meaningfully in Europe. We think the U.S.-Iran war should add further impetus to the theme,” wrote Barclays strategist Emmanuel Cau.
“AI/Hyperscaler spending continues to drive strong earnings uplift in Semis, Electricals and boosting infrastructure names despite elevated valuations/positioning,” he continued.
German semiconductor manufacturers and suppliers including Aixtron, Infineon and Siltronic posted gains ranging from 2.2% to 3.1%, while ASML, STMicroelectronics and BESI increased between 1.5% and 2.3%.
ASML, recognized as the world’s leading supplier of chip manufacturing equipment, reported better-than-expected earnings last week and increased its 2026 revenue projections as artificial intelligence drives up demand for its products.
Other companies in the engineering and electrical equipment sectors also performed well, with Schneider Electric and Legrand posting gains of 1.5% and 2% respectively.
The overall European technology index climbed 1.2%, ranking among the top performers within the broader STOXX 600.
