European shares gain as upbeat Micron forecast revives AI rally

European shares opened higher on Thursday, led by gains in technology stocks, as strong forecasts from Micron and Qualcomm assuaged concerns about ballooning valuations in the sector, while easing oil prices provided further support.

The pan-European STOXX 600 index .STOXX was up 0.27% at 636.88 points by 0711 GMT.

The AI rally was back in focus as U.S. chipmakers MicronMU.O and QualcommQCOM.O unveiled strong forecasts, temporarily placating investor concerns that a rally in global AI-linked stocks had run too far.

European tech stocks .SX8P, up 30% for the quarter, rose 1.7% and led gains on the benchmark.

Chipmakers Infineon IFXGn.DE and STMicroelectronics STMPA.PA gained 5.2% and 3.7%, respectively, while semiconductor equipment suppliers BE Semiconductor BESI.AS and ASML ASML.AS climbed more than 3.5% each.

AI-equipment maker Siemens Energy ENR1n.DE added 1%.

Continued declines in oil prices also supported investor sentiment, as more stranded oil tankers exited the Strait of Hormuz. O/R

Among individual stocks, H&M shares were down 1.2% after the Swedish fashion retailer reported second-quarter operating profit below estimates. The broader retail sector .SXRP was up 0.4%.

easyJet EZJ.L shares rose 5.5% after the British budget carrier rejected a fourth takeover offer from U.S.-based investment firm Castlelake.

-Reporting by Utkarsh Hathi and Johann M Cherian an Bangaluru; Editing by Sonia Cheema/Reuters