Updated
Updated · CNBC · Aug 5
Stoxx 600 Hits Record 656.86 as AI Chip Stocks Power 10% 2026 Gain
Updated
Updated · CNBC · Aug 5

Stoxx 600 Hits Record 656.86 as AI Chip Stocks Power 10% 2026 Gain

3 articles · Updated · CNBC · Aug 5

Summary

  • Europe’s Stoxx 600 closed up 0.7% at a record 656.86 on Tuesday, extending its 2026 gain to 10% as investors kept backing AI-linked shares.
  • Semiconductor names led the rally: Soitec has surged 371%, AT&S 330%, Technoprobe 123%, Aixtron 116% and STMicroelectronics 101%, helped by earnings upgrades, strong order backlogs and AI capex spending.
  • That trade has turned choppier in recent weeks, with AT&S and Aixtron each down more than 20% from mid-June peaks even as analysts say committed infrastructure spending still supports chipmakers.
  • Banks have also outperformed, with the Euro Stoxx Banks index up 18% on takeover activity and resilient margins, while BP shares have risen 20% as the U.S.-Iran conflict lifted oil prices.
  • Luxury and autos have lagged badly: LVMH is down 24.43%, Hermes 26.05% and Kering 8.31%, while the Stoxx Autos index has fallen 16% and Stellantis has slumped 48.7%.

Insights

With European banks hitting 2007 highs and AI chips surging, is the continent's economic engine permanently shifting away from luxury and autos?
As Chinese competition and shifting habits crush European automakers, will the AI and energy boom be enough to sustain record market highs?