European shares log record close on Siemens, CoreWeave-fuelled AI optimism
The broader tech sector added 2.5%
European shares reached a record high on Wednesday, boosted by positive forecasts from Siemens Energy and CoreWeave, a neocloud company. The pan-European index rose 0.72 percent to 663.05 points, nearing an intraday record high of 663.41. Germany’s DAX also performed well, gaining 1.2 percent and nearing an all-time high, with Siemens Energy leading the gains.
Siemens Energy raised its expectations for profit margins in 2027 and announced plans to more than triple its dividend, leading to a 10.8 percent increase in its shares. CoreWeave's stock jumped 11.9 percent and 8 percent for Aixtron, while other chip stocks like Soitec also gained. The optimism around AI was driven by CoreWeave's forecast to become profitable in the first half of 2028.
Analysts noted that the rally might have limited room to run due to uncertainties about the profitability of AI investments and European equity fundamentals. The Stoxx 600 also showed strength but was close to its upside-risk target. Less AI-exposed sectors in Europe underperformed, with CSG, a Czech arms producer, falling 21.6 percent after cutting its operating margin forecast. Energy prices and geopolitical events also contributed to inflation concerns in Europe.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
