European share markets moved into positive territory at the Thursday open, driven largely by technology stocks after upbeat guidance from two U.S. chipmakers reassured investors concerned about stretched valuations in the sector.
The pan-European STOXX 600 index was up 0.27% at 636.88 points by 0711 GMT. Momentum returned to AI-linked names after Micron and Qualcomm offered strong forecasts, temporarily easing worries that the rally in global AI-related equities had outpaced fundamentals.
Tech stocks on the continent, which have risen about 30% this quarter, led the benchmark higher, advancing 1.7% in early trade. Chipmakers saw notable moves: Infineon jumped 5.2% and STMicroelectronics rose 3.7%. Suppliers to the semiconductor industry also advanced, with BE Semiconductor and ASML climbing more than 3.5% each. AI-equipment maker Siemens Energy added 1%.
Market sentiment received an additional lift from continued declines in oil prices, supported in part by reports that more previously stranded oil tankers had left the Strait of Hormuz, reducing some shipping-related supply concerns.
On the single-stock front, H&M shares fell 1.2% after the Swedish fashion retailer reported second-quarter operating profit that came in below analyst estimates. Despite that, the broader retail sector traded higher, up around 0.4%.
Airline stocks saw mixed action. easyJet shares jumped 5.5% after the British budget carrier turned down a fourth takeover bid from the U.S.-based investment firm Castlelake.
The market moves reflected a combination of company-level news and sector rotations. Strong guidance from major chip suppliers helped calm valuation concerns in technology, while softer energy prices and eased shipping frictions supported broader risk appetite. At the same time, individual corporate earnings and takeover developments continued to produce idiosyncratic winners and losers across retail and travel.
Investors will likely continue to monitor tech guidance and energy market dynamics for signals on whether the renewed appetite for AI-related stocks can be sustained beyond the initial rally.