Positive international sector cues lifted European semiconductor shares on Monday, with support from US markets over the weekend and strength in Asia, where Samsung Electronics and SK Hynix helped push up South Korea's Kospi and Japan's technology-heavy Nikkei 225 gained. Traders said confidence that a new model from OpenAI could further boost demand for artificial-intelligence computing was a key driver. US chip names such as Sandisk, Marvell and Micron had already been among the biggest winners before the weekend and continued to rise in German Tradegate trading.
Infineon led the German benchmark at the top of the Dax, extending its gain to almost 7% and moving above its 21-day moving average as it tried to break a downtrend that began in June. The stock also received support from a Warburg buy recommendation. Analyst Malte Schaumann said market expectations for Infineon remained too cautious given the lower valuation and the company's acceleration in power semiconductors for AI data centers. He raised his rating from Hold to Buy, kept his target at 84 euros and adjusted estimates to reflect the acquisition of Ams-Osram's sensor portfolio.
Smaller chip peers followed: Elmos rose about 3% in the MDax, while equipment makers Suss Microtec and Aixtron gained up to 8%. Wafer supplier Siltronic added 2.2%. UBS raised its industry revenue forecasts in a new study, with analyst Nicolas Gaudois saying memory semiconductor revenue could reach almost $1 trillion in 2026 and $1.65 trillion in 2027. Market expert Stephen Innes wrote that the AI investment story had not reversed despite valuation debate.
Broader European sentiment was mixed. In the Stoxx Europe 600, the technology sector rose 1.2% on Monday, second only to oil stocks, which benefited from higher oil prices at the start of the week. Siemens Energy, Schneider Electric, ABB and construction firm Hochtief also attracted buying as indirect beneficiaries of data-center demand and electricity consumption. SAP fell 1.6% among Dax losers, reflecting a recurring pattern in which chip enthusiasm is accompanied by concerns that agentic AI (systems that make decisions autonomously without every step being prescribed by humans) could displace some software offerings.
Consorsbank's Jochen Stanzl said the market's quick digestion of strong US labor-market data on Friday was somewhat surprising. He attributed the resilience to hopes that US inflation data due on Friday will be weaker, adding that if not, concerns ahead of the next US central bank meeting could return. There was no fresh Wall Street signal on Monday because US markets were closed for a holiday.
The article also noted that AI data centers are increasingly demanding gigawatt-scale power, comparable to several modern nuclear reactor blocks, while hyperscalers secure long-term energy contracts and grid and generation capacity struggle to keep pace. Geopolitical risks around the Iran war and the Strait of Hormuz were cited as additional constraints on energy supply.
