Europe's 'AI laggards' rally as traders take profit on semis

Atos SE

19/05/2026 10:41

** European software and IT stocks surge as traders shift back into stocks perceived as 'losers' of the AI transition, while taking some profit from chip companies following a stellar run

** The bounce follows heavy losses this year across these sectors, with software heavyweight SAP SAPG.DE up as much as 6.1% in its biggest one-day gain in over a year, trimming its YTD loss to about 25%

** Degroof Petercam analyst Michael Roeg says investors are shedding some of their AI fears, but cautions sentiment "has been volatile and could just as easily reverse"

** Elsewhere in software, IT services and data companies, Nemetschek NEKG.DE, Capgemini CAPP.PA, Reply REY.MI and Sopra Steria SOPR.PA rise 3-5%, they remain down around 8-25% YTD

** Their gains help the broader European tech .SX8P index rise over 1%, more than offsetting weakness in semiconductor stocks such as ASML ASML.AS, Infineon IFXGn.DE and STMicro STMPA.PA

** Traders point to signs of rotation out of chip stocks after a strong, momentum-driven rally left positioning crowded and valuations stretched

** Among other software, cloud and IT services names, Planisware PLNW.PA, Dassault Systemes DAST.PA, Atos ATOS.PA, TeamViewer TMV.DE, OVH OVH.PA, Bechtle BC8G.DE, Adesso ADNGk.DE and Cancom COKG.DE gain 2-8%, also trimming losses so far this year

** In advertising, Publicis PUBP.PA and WPP WPP.L rise 3-4%, cutting YTD slide to around 4 and 16% respectively

 (Reporting by Leo Marchandon and Danilo Masoni)

 ((leo.marchandon@thomsonreuters.com))