Some European AI concept stocks surge, with funds flocking to infrastructure proxy targets

Glonghui, May 21 — As investors heavily buy into companies providing the infrastructure for AI, some European technology stocks have soared this year. Semiconductor equipment manufacturer Aixtron has risen 189% year to date; Technoprobe, which also produces semiconductor manufacturing equipment, is up 129%; STMicroelectronics has climbed 133%. Nokia, once a mobile phone giant and now transitioning to AI business, has also gained 108% this year. Fabio Bassi, JPMorgan’s Head of Cross-Asset Strategy, said that as demand for computing power increases, investors are turning their attention to companies developing data centers, network devices, and chip manufacturing equipment, as well as companies involved in electricity, cooling, and software tools. “In Europe, scarcity has further amplified this trend. There are very few large, liquid pure AI companies, so funds are concentrated into a small number of companies regarded as AI proxies, which also feature genuine AI demand and crowded positioning.”