Stocks in Europe just delivered one of their strongest quarters for equities in years, as semiconductor stocks have recently dominated Wall Street's bounce in light of optimism surrounding AI companies.
Notably, recent trading numbers show European-based tech companies such as ASML, STMicroelectronics, Infineon, and Siemens Energy starting the week on a strong note, and the appeal for investors is that many of these semiconductor companies still offer exposure to the AI buildout at valuations that look more reasonable than those attached to their biggest US counterparts.
European Semiconductor Stocks Posting Positive Numbers
The latest trading session gives investors a clearer look at where momentum is leaning among tech stocks in Europe. ASML rose 3.3% on Tuesday, while STMicroelectronics gained 3%, Infineon added 2.7%, and Siemens Energy jumped about 5%. Siemens Energy, in particular, saw the value of its shares jump after the company’s management said demand for its products remains strong, pushing its year-to-date share value increase to almost 40%.
The US AI giants were positive as well, but their gains were more modest at the time of writing. Microsoft is up 0.6% at $370.86; Nvidia has gained 1.8% to $198.48; and Alphabet rose 0.8% to $356.44.
The moves came as Europe’s technology sector recorded its best quarter since October 2001, helped by a growing confidence in semiconductor demand and the growing need for power equipment behind new data-center projects. Notably, the STOXX 600, the leading stock index of European stocks, climbed by about 10% in the second quarter, marking one of its best quarterly performances since the end of 2022.
Europe Is Selling The Tools That Keep AI Running
The AI trade is wider than software, cloud platforms, and high-end GPUs. There are also companies supplying the equipment and infrastructure that those AI giants need in order to keep expanding.
These companies range from something like ASML that supplies lithography machines used to manufacture advanced chips, to STMicroelectronics and Infineon, which are positioned further along the semiconductor supply chain.
The opportunity is already beginning to show in the outlooks of these semiconductor companies. For example, STMicroelectronics recently raised its 2026 data-center revenue target to $1 billion, up from a previous estimation of $500 million. Infineon, meanwhile, expects its AI data-center business to generate roughly €1.5 billion this year, with that figure projected to reach €2.5 billion in 2027.
Still, the European names are not insulated from the volatility that comes with the AI niche. Earlier in June, investors reassessed AI-related valuations, leading to a selloff that erased an estimated $1.3 trillion from global semiconductor stocks in only a few sessions.
The rebound in European semiconductor stocks from last week, however, shows that Europe offers a way to participate in the same AI infrastructure theme without the same concentration risk