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.
European shares gain as upbeat Micron forecast revives AI rally
European markets opened on a positive note, driven by a surge in technology stocks. Strong forecasts from US chipmakers Micron and Qualcomm eased worries about inflated valuations, reigniting the AI rally. European tech shares saw significant gains, with chipmakers and equipment suppliers leading the charge. Falling oil prices and a boost for easyJet also contributed to the upbeat sentiment.
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