European Tech Sector Sees Unexpected Rebound on AI Windfall
- ASML and Nokia are the main growth drivers for the sector
- Tariff threats, lower EV demand pose challenges ahead
The sector’s main growth drivers for the fourth quarter were ASML Holding NV and Nokia Oy.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
European technology giants are exceeding expectations this quarter, joining financial and health-care companies as one of the reporting season’s best-performing segments.
Buoyed by artificial intelligence demand, the technology sub-sector in the MSCI Europe index averaged earnings growth of 5.5% in the fourth quarter, significantly ahead of pre-season estimates of 0.5%. The MSCI Europe Index’s 1.1% per-share earnings growth is also ahead of expectations of a 1.3% decline.