European stock markets climbed to fresh record highs this week, driven by strong corporate earnings, improving economic data and growing investor demand for companies supplying technology behind the global artificial intelligence boom.

The pan-European STOXX Europe 600 closed at about 657 points on Wednesday after reaching a new intraday record, extending its winning streak to a third straight session. The EURO STOXX 50, which tracks the eurozone’s largest listed companies, also touched an all-time high. Since the start of 2026, the STOXX Europe 600 has advanced around 10%.

National markets also posted milestones. Germany’s DAX rose above 26,100 for the first time, France’s CAC 40 climbed to a record 8,700, and Italy’s FTSE MIB reached an unprecedented 53,540.

Unlike previous rallies dominated by luxury brands, pharmaceutical companies or banks, this year’s gains have largely been driven by businesses producing semiconductors, chip-testing equipment, advanced electronic components and industrial technologies supporting AI infrastructure.

Investors have also been encouraged by reports of progress in negotiations aimed at reopening the Strait of Hormuz. Hopes of easing tensions in the Middle East pushed oil prices lower, reducing inflation concerns and easing cost pressures for European manufacturers and airlines.

The economic outlook has also improved. Preliminary figures from Eurostat showed the eurozone economy expanded by 0.4% in the second quarter compared with the previous three months, twice the pace expected by economists. Annual economic growth accelerated to 1%, while stronger-than-expected second-quarter corporate earnings added to investor confidence.

Among the year’s strongest performers, France’s Soitec has emerged as the leading stock in the STOXX Europe 600, with its shares soaring 414.5% since January. Investors have backed the semiconductor materials producer on expectations that demand for AI infrastructure will continue to grow despite weaker annual revenue.

Austria’s AT&S ranked second after its shares surged 343.5%, supported by demand for advanced substrates used in AI servers. The company recently forecast revenue growth of between 30% and 35% for the current financial year.

Other major gainers include Tullow Oil, up 136.4%; ams-OSRAM, which gained 136.2%; and Technoprobe, whose shares climbed 135.1% as demand for semiconductor testing equipment increased.

German semiconductor equipment maker AIXTRON advanced 121%, while STMicroelectronics more than doubled with a gain of 105.7% following signs that the global semiconductor market is recovering.

Italian engineering company Saipem rose 75.8% on the back of stronger offshore energy investment, while Austria’s Raiffeisen Bank International climbed 67.6% after reporting improved profits outside Russia. Steel producer ArcelorMittal rounded out the top 10 with a 65.3% gain, supported by stronger profitability and European trade protections.

The performance of these companies reflects a broader shift in European markets, where suppliers of advanced technology have become central to investor interest. As spending on AI data centres, semiconductor manufacturing and digital infrastructure continues to expand, technology-focused industrial companies are increasingly shaping the direction of Europe’s equity markets.

French energy company TotalEnergies has agreed to acquire Shell’s onshore renewable energy business in Europe, strengthening its position in the region’s fast-growing clean energy market while also announcing the partial sale of another renewable portfolio to US investment firm KKR.

The company said it had reached an agreement to purchase Shell’s European onshore renewable assets for an undisclosed amount. The acquisition includes about four gigawatts of electricity generation capacity, made up largely of solar and wind projects that are either operating or under construction in Italy and the Netherlands. The package also includes a pipeline of solar, wind and battery storage developments in Italy, Britain and Spain.

Although neither company disclosed the purchase price, a source familiar with the transaction told AFP the deal is valued at several hundred million euros.

The acquisition is expected to expand TotalEnergies’ renewable energy footprint across Europe as governments continue investing in cleaner energy sources and utilities increase their focus on reducing carbon emissions.

At the same time, TotalEnergies announced a separate transaction involving part of its existing renewable portfolio. The company will sell a 50 percent stake in a collection of wind and solar assets located in Germany, Spain, France and Poland to US investment firm KKR.

The agreement values that portfolio at approximately €1.8 billion ($2.1 billion). The assets included in the sale represent around 1.2 gigawatts of electricity production capacity.

Stephane Michel, President for Gas, Renewables and Power at TotalEnergies, said the two transactions support the company’s long-term strategy by balancing investment with capital management.

“These two transactions enable us to optimise our capital allocation in renewables while continuing to deploy our Integrated Power strategy,” Michel said in a statement.

The latest deals reflect a broader trend among major energy companies as they reshape their portfolios to meet growing demand for renewable electricity while maintaining financial flexibility.

Following the acquisition of Shell’s renewable operations, TotalEnergies said it will have close to 10 gigawatts of renewable electricity production either already operating or under construction across Europe. The company also reported having an additional 27 gigawatts of renewable projects currently under development.

The expansion comes as Europe continues to accelerate investment in renewable energy infrastructure to strengthen energy security and meet climate targets. Solar, wind and battery storage projects have become central to the region’s transition away from fossil fuels, attracting increased interest from both energy companies and institutional investors.

With the Shell acquisition and the KKR partnership, TotalEnergies is positioning itself to expand its renewable generation capacity while sharing investment costs on selected assets, allowing it to continue growing its clean energy business across key European markets.