European shares gain as upbeat Micron forecast revives AI rally

European shares opened higher on Thursday, 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% at 636.88 points by 0711 GMT. The AI rally was back in focus as U.S. 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% for the quarter, rose 1.7% and led gains on the benchmark.


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

AI-equipment maker Siemens Energy added 1%.

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% after the Swedish fashion retailer reported second-quarter operating profit below estimates. The broader retail sector was up 0.4%. easyJet shares rose 5.5% after the British budget carrier rejected a fourth takeover offer from U.S.-based investment firm Castlelake.