European shares gain as upbeat Micron forecast revives AI rally

[BRUSSELS] European shares opened higher on Thursday (Jun 25), led by gains in technology stocks, as strong forecasts from Micron and Qualcomm assuaged concerns about ballooning valuations in the sector, while easing oil prices provided further support.

The pan-European STOXX 600 index was up 0.27 per cent at 636.88 points by 0711 GMT. The AI rally was back in focus as US chipmakers Micron and Qualcomm unveiled strong forecasts, temporarily placating investor concerns that a rally in global AI-linked stocks had run too far.

European tech stocks, up 30 per cent for the quarter, rose 1.7 per cent and led gains on the benchmark.

Chipmakers Infineon and STMicroelectronics gained 5.2 per cent and 3.7 per cent, respectively, while semiconductor equipment suppliers BE Semiconductor and ASML climbed more than 3.5 per cent each.

AI-equipment maker Siemens Energy added 1 per cent.

Continued declines in oil prices also supported investor sentiment, as more stranded oil tankers exited the Strait of Hormuz. Among individual stocks, H&M shares were down 1.2 per cent after the Swedish fashion retailer reported second-quarter operating profit below estimates.

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The broader retail sector was up 0.4 per cent. easyJet shares rose 5.5 per cent after the British budget carrier rejected a fourth takeover offer from US-based investment firm Castlelake. REUTERS