European equities keep reaching new highs.
The pan-European STOXX Europe 600 climbed to another record on Wednesday, closing at around 657 points after touching a fresh intraday high and extending its winning streak to a third consecutive session.
The blue-chip EURO STOXX 50, which tracks the euro area’s largest listed companies, also set a new all-time high during the day. The broader benchmark has now gained about 10% since the start of 2026.
The rally is broad-based. Germany’s DAX broke above 26,100 for the first time. France’s CAC 40 climbed to a record 8,700, while Italy’s FTSE MIB reached an unprecedented 53,540.
Record highs everywhere
Yet the companies leading Europe’s bull market bear little resemblance to the household names that have long defined the continent’s equity story.
Luxury groups are nowhere to be seen. Neither are the pharmaceutical giants that traditionally anchor European portfolios. Even banks, despite a strong year, have largely been overtaken.
Instead, the biggest winners of 2026 are the companies building the infrastructure behind the artificial intelligence boom: manufacturers of semiconductor wafers, chip-testing equipment, advanced substrates and industrial technology.
Europe’s stock market is no longer being led by brands consumers recognise. It is increasingly being powered by the suppliers enabling the world’s AI capital-spending race.
Why European stocks keep setting records
Several forces have come together to fuel the rally.
The immediate catalyst was geopolitical.
Reports that Washington and Tehran are moving towards a new agreement to reopen the Strait of Hormuz pushed oil prices sharply lower, easing inflation fears and reducing cost pressures for Europe’s manufacturers and airlines.
The economic backdrop has also surprised investors.
Eurostat’s preliminary estimate showed the eurozone economy expanded 0.4% quarter-on-quarter in the second quarter, double economists’ expectations, following flat growth in the first quarter. Annual growth accelerated to 1.0%.
Pantheon Macroeconomics’ chief eurozone economist Claus Vistesen said the euro area “comfortably beat expectations yesterday, posting GDP growth of 0.4% quarter-to-quarter in Q2, after upwardly revised zero growth in Q1. This was 0.2pp above the consensus and 0.1pp above our forecast.”
Corporate earnings have added another pillar of support.
Second-quarter reporting has generally exceeded expectations, while global enthusiasm for artificial intelligence infrastructure has transformed a small group of European technology suppliers into some of the world’s best-performing stocks.
The 10 best-performing STOXX Europe 600 stocks in 2026
These are the 10 best-performing European stocks with a market capitalisation of €1 billion or more, ranked by share price performance through 5 August.
10. ArcelorMittal (+65.3%)
Europe’s steel champion has quietly become one of this year’s biggest industrial winners.
Shares of ArcelorMittal have gained 65.3% since the start of 2026, making the company the tenth-best performer in the STOXX Europe 600 through 5 August.
The Luxembourg-based group reported revenue of $16.5 billion in the second quarter and underlying operating profit of $2.1 billion, its strongest performance in Europe for three years.
Profitability improved as new EU import quotas reduced competition from cheaper foreign steel, while the company continued buying back its own shares, returning more cash to investors.
9. Raiffeisen Bank International (+67.6%)
Higher interest rates and resilient economic activity across Central and Eastern Europe have helped the Austrian lender outperform most of its European peers. Raiffeisen Bank International shares have climbed 67.6% year-to-date through 5 August.
First-half profit excluding Russia rose 25% to €708 million, prompting management to raise its full-year forecast for net interest income to €4.4–4.5 billion.
Investors have also welcomed stronger capital levels and easing concerns over the bank’s Eastern European operations.
8. Saipem (+75.8%)
The Italian engineering group has benefited from the global revival in offshore energy investment.
Saipem stock is up 75.8% in 2026 through 5 August, extending one of the strongest rallies among European industrial companies.
First-half revenue increased to €7.35 billion, while underlying operating profit rose 9.4% to €836 million. Its order book expanded to a record €29.9 billion, giving the company years of work already secured despite trimming guidance to reflect around €70 million of conflict-related costs.
7. STMicroelectronics (+105.7%)
The Franco-Italian chipmaker has emerged as one of Europe’s biggest beneficiaries of renewed enthusiasm for artificial intelligence infrastructure.
Shares of STMicroelectronics have more than doubled in 2026, rising 105.7%.
Second-quarter revenue climbed 26% to $3.49 billion, while the company returned to an operating profit after several difficult quarters. Management forecast around $3.7 billion in revenue for the current quarter, signalling that the semiconductor downturn is gradually easing.
6. AIXTRON (+121.0%)
The German company manufactures highly specialised equipment used to produce advanced semiconductors.
AIXTRON shares have surged 121% since the beginning of the year, placing the company among Europe’s biggest AI winners.
Second-quarter orders jumped 81% to €214.5 million, driven by booming demand for photonics and power-chip manufacturing equipment. Management reaffirmed its full-year revenue forecast of €560 million.
5. Technoprobe (+135.1%)
Few investors know Technoprobe, yet almost every advanced semiconductor relies on its testing technology before reaching customers.
Technoprobe has rallied 135.1% in 2026 through 5 August, making it one of Europe’s strongest-performing technology stocks.
Following a record first quarter with €187 million in revenue, management raised its full-year sales forecast to between €950 million and €1.05 billion, reflecting growing demand for AI-related chip testing equipment.
4. ams-OSRAM (+136.2%)
The Austrian sensor and photonics specialist has staged one of the European market’s biggest turnarounds.
ams-OSRAM stock has gained 136.2% since January.
Second-quarter revenue reached €805 million, at the top end of company guidance, while management continued making progress towards commercial production of its microLED technology for augmented-reality glasses.
Investors also welcomed the sale of its non-core sensor division to Infineon, strengthening the company’s balance sheet.
3. Tullow Oil (+136.4%)
The oil producer is the only energy company among Europe’s top-performing stocks this year.
Shares of Tullow Oil have advanced 136.4% year-to-date through 5 August.
Management recently increased its forecast for 2026 free cash flow to between $170 million and $250 million, more than doubling its previous guidance after benefiting from stronger oil prices during the first half of the year.
Ironically, the stock fell on Wednesday as hopes of easing tensions in the Middle East pushed crude prices lower.
2. AT&S (+343.5%)
Austria’s AT&S manufactures the advanced substrates that connect artificial intelligence processors with memory chips inside high-performance servers.
AT&S shares have soared 343.5% in 2026, making the company Europe’s second-best-performing stock.
When reporting quarterly results on 4 August, management forecast 30%–35% revenue growth this year, driven by continued investment in AI data centres.
Despite the spectacular rally, the shares remain about 40% below the record highs reached in June.
1. Soitec (+414.5%)
No European company has benefited more from the artificial intelligence investment boom than France’s Soitec.
Soitec shares have skyrocketed 414.5% since the start of 2026 through 5 August, making the company the best-performing constituent of the STOXX Europe 600.
The semiconductor materials specialist reported annual revenue of €592 million, down 34% as the industry worked through excess inventories. However, investors focused on signs that the recovery had begun.
Revenue from its fast-growing photonics business exceeded $100 million for the first time, while free cash flow reached €63 million, far ahead of analysts’ expectations.
Management expects revenue to return to growth during the current financial year, reinforcing confidence that Soitec is becoming one of Europe’s biggest beneficiaries of the global AI infrastructure build-out.