Europe’s few AI plays soar as US tech frenzy goes global

European AI-related stocks have surged as US and Asian AI enthusiasm spreads to the continent, driving a rotation away from large defensive 'Granolas' into chipmakers, equipment suppliers and infrastructure names. Top performers in the Stoxx Europe 600 this year include STMicroelectronics (more than doubled), Aixtron (+168%), BE Semiconductor Industries (+87%) and Nokia (nearly +100%). The Stoxx Europe Total Market Semiconductors index is up about 74% year-to-date versus the broad Stoxx Europe 600 up roughly 2%. Investors are chasing niche “picks-and-shovels” suppliers (Soitec, Kalray, Riber) and related energy/electrification plays, but strategists warn of crowding and rich valuations (STMicro ~37x forward P/E; Aixtron ~47x), calling for greater selectivity.