By Ozan Ergenay and Danilo Masoni April 22 (Reuters) - Shares in European chip and electrical equipment makers rallied on Wednesday as investors piled into stocks set to benefit from the artificial
European Chip and Electrical Equipment Stocks Jump on AI-Driven Earnings Momentum
AI Investment Boom Fuels Rally in European Tech and Equipment Shares
By Ozan Ergenay and Danilo Masoni
April 22 (Reuters) - Shares in European chip and electrical equipment makers rallied on Wednesday as investors piled into stocks set to benefit from the artificial intelligence investment boom, following upbeat earnings reports and an outsized surge in U.S. peers.
Key Company Performances
ASM International Surges on Strong AI Demand
Computer chip equipment maker ASM International surged 9% to an all-time high after it guided for second‑quarter sales well ahead of market expectations, with analysts highlighting robust AI-driven demand.
ABB Raises Outlook Amid Electrification Boom
Swiss engineering company ABB raised its full-year outlook, saying booming demand from data centres and other parts of its electrification business offset heightened uncertainties linked to the Iran war. Its shares also hit a new record.
Sector-Wide Trends and Market Indices
European Semiconductor Rally Mirrors U.S. Gains
The rally in European semiconductor shares and other companies seen as beneficiaries of the AI infrastructure build-out in the region mirrors gains in the Philadelphia SOX index, the U.S. benchmark for the sector.
The index has risen for 15 consecutive sessions—the longest winning streak since at least 2014—gaining 35% over that period, its strongest performance in around 24 years.
Investment Outlook and Analyst Commentary
Barclays on AI-Led Upswing
Barclays said a long stretch of weak investment in developed markets is giving way to an AI-led upswing, lifting demand for semiconductors and related infrastructure.
The UK bank expects investment growth to accelerate from 2026 as AI build-outs gather pace, alongside spending on defence, energy security and supply-chain security.
"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," Barclays strategist Emmanuel Cau wrote.
"AI/Hyperscaler spending continues to drive strong earnings uplift in Semis, Electricals and boosting infrastructure names despite elevated valuations/positioning," he added.
Other Notable Movers
German and European Chipmakers Rise
German chipmakers and suppliers Aixtron, Infineon and Siltronic rose between 2.2% and 3.1%, while ASML, STMicroelectronics and BESI gained between 1.5% and 2.3%.
ASML's Earnings and Outlook
ASML, the world's largest supplier of chipmaking tools, last week reported stronger-than-expected earnings and lifted its 2026 revenue outlook as AI boosts demand for its equipment.
Engineering and Electrical Equipment Sector Gains
Elsewhere in the engineering and electrical equipment sector, Schneider Electric and Legrand were also up 1.5% and 2%, respectively.
Broader Market Performance
The broader European tech index was up 1.2%, among the best performers on the wider STOXX 600.
(Reporting by Ozan Ergenay in Gdansk and Danilo Masoni in Milan, editing by Milla Nissi-Prussak)
