European chip and equipment stocks surge on AI infrastructure boom

European chipmakers and electrical-equipment groups surged as investors kept moving into companies tied to the artificial-intelligence build-out, with ASM International and ABB drawing the clearest buying as the U.S. semiconductor rally hit another milestone. The Philadelphia Semiconductor Index rose for a 16th straight session and reached a record high, a run that has lifted the gauge about 39% and put April on track for its best monthly gain since February 2000.

ASM International, based in the Netherlands, jumped 9% to a record after telling investors that first-quarter revenue reached €863 million, the high end of its guidance. The company said AI-led demand accelerated further in the quarter and forecast second-quarter revenue of about €980 million, well above analyst estimates of €883.9 million. That gap matters: it suggests AI spending is feeding not just sentiment, but near-term sales for equipment makers that sit directly in the supply chain for advanced chips.

ABB, the Swiss engineering group, also gave the market a fresh reason to keep bidding up industrial names linked to data-center investment. The company raised its full-year outlook and said it now expects high single-digit to low double-digit comparable revenue growth in 2026, up from an earlier forecast for 6% to 9%. Reuters-linked reports said order intake rose 32% to $11.29 billion, helped by demand for power-grid products used in data centers and by electrification activity that offset uncertainty tied to the Iran war.

The rally was not confined to two stocks. Aixtron, Infineon and Siltronic also moved higher, showing how quickly the AI trade has broadened beyond U.S. mega-cap software and cloud companies into chipmakers, tools suppliers and power-system vendors. In the United States, the Philadelphia Semiconductor Index’s 16-session winning streak was its longest on record, based on data going back to 1994, reinforcing the idea that investors are chasing the physical infrastructure behind AI rather than just the software layer.

That distinction is important for Europe. Companies such as ASM International and ABB are selling directly into the capex cycle that AI requires, while other European chip names are rising more in sympathy with the global trade. Barclays has argued that investment growth could accelerate from 2026 as AI build-outs gather pace, alongside spending tied to defense, energy security and supply-chain security. Europe has lagged the U.S. in turning AI enthusiasm into corporate capital spending, but Wednesday’s move suggested investors are starting to look for catch-up winners among the continent’s equipment and semiconductor suppliers rather than waiting for the software giants alone to justify the boom.