Soitec, ASM International, Siltronic, Aixtron, Infineon, Elmos and STMicroelectronics all rebounded sharply. Together they span the whole chain: materials, equipment, power, automotive and industrial.
Analysis
The move followed a sell-off triggered by the previous day’s bond rout. Investors sold duration, then bought growth assets back as soon as pressure on yields eased. The European technology index remains close to its annual highs.
Opportunity
The opportunity is to separate the segments: AI and equipment benefit from the investment cycle, while automotive and industrial end markets, served by Infineon or STMicroelectronics, are slower to recover.
Investor outlook
Positive outlook, but rate dependent. The sector is a long duration asset: another surge in yields could repeat this week’s volatility.
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