European semiconductor stocks climbed on Thursday following a dramatic earnings report from U.S. memory chipmaker Micron Technology that outstripped expectations and pushed the sector higher into early trading.
By 07:27 GMT, shares in ASML, ASMI, BESI and STMicroelectronics had advanced in the range of 3.5% to 4.2%. Other suppliers and chipmakers also saw gains: Siltronic, AT&S and Infineon rose between 2.3% and 5.3%, while Soitec and Technoprobe increased by 6.8% and 4.7%, respectively. The STOXX Europe Technology index strengthened 1.8%, making it one of the stronger performers on the broader STOXX 600 index.
The move in European names followed a large after-hours rally in Micron shares after the company reported fiscal third-quarter revenue of $41.46 billion, compared with $9.3 billion in the same period a year earlier and ahead of the $35.84 billion analysts had been expecting. Adjusted earnings per share of $25.11 also exceeded the consensus estimate of $20.78. Micron's stock jumped more than 18% in extended trading.
Micron said its data centre business was the standout, with revenue in that segment rising to $11.5 billion - an increase of more than sevenfold - driven by strong demand for memory chips used in artificial intelligence infrastructure. The company also reported a substantial expansion in profitability, with gross margin rising to 84.9% from 39% a year earlier.
Looking ahead, Micron guided revenue for the current quarter of around $50 billion, which the company described as nearly four and a half times the year-earlier level and notably above the $43.58 billion consensus estimate compiled by LSEG. Micron additionally disclosed that it has signed 16 long-term supply agreements with data centre operators and automakers, representing expected financial commitments of $22 billion over three to five years.
Market participants in Europe priced the Micron results into shares across the chip supply chain, pushing both equipment makers and component suppliers higher in early trading. The gains were broad-based among listed semiconductor-related firms by the 07:27 GMT check, indicating a cross-country market reaction to Micron's results and forward guidance.
While Micron's numbers and outlook were the immediate catalyst, the report highlighted a pronounced concentration of demand within the data centre market for memory products, which translated directly into outsized revenue growth and margin expansion for the company. The long-term supply deals announced by Micron further reflect commitments from large customers on future purchases over multi-year horizons.
Investors and market watchers will be watching subsequent company updates and quarterly reports from other players in the semiconductor ecosystem for confirmation that demand and pricing trends are aligning similarly across suppliers and manufacturers.