European stocks rise on AI chip and Bitcoin strength

Nvidia, SAP, Infineon and other chips- and software-linked stocks were in focus as market participants reassessed whether the recent weakness in semiconductors was a pause or the start of a larger reset. Nvidia’s shares, which have swung sharply over the past two months, closed at $208.48 on Monday after rebounding from a recent low near $190. The stock remains above its 200-day moving average of $195.17 and roughly in line with its 50-day average, but the 14-day RSI at 46.0 shows momentum has cooled from earlier overbought levels. That leaves room for further recovery if buyers believe AI infrastructure spending is still accelerating.

The broader thesis was reinforced by comments from market watchers that AI investment remains robust despite rising electricity, chip and construction costs. That matters for Europe because the region’s industrial and software groups are increasingly exposed to the same capex cycle that has powered the U.S. technology rally. SAP, which has been one of the stronger large-cap performers in recent months, traded at $218.66, well above both its 50-day moving average of $175.41 and 200-day average of $195.80, a sign investors still prize earnings visibility and cloud exposure even as valuation multiples stay rich.

Infineon also drew attention as a proxy for automotive and industrial demand linked to AI and electrification. The stock has fallen back from a sharp run-up earlier in the summer, with its latest close of $63.36 well below the recent peak near $85, but the sector remains sensitive to any evidence that data-center demand and power-efficiency spending are cushioning the cyclical slowdown elsewhere in chips.

Bitcoin’s move to $79,144.56 added another layer to the risk-on tone. The cryptocurrency’s 14-day RSI at 89.7 points to stretched short-term conditions, but the rally is important because it often tracks liquidity expectations and broader appetite for speculative assets. Adalytica’s Bitcoin Fear & Greed Index is at 100, or extreme greed, showing just how strong the momentum has become. For equities, that can be supportive in the near term, but it also raises the odds of sharper reversals if sentiment turns.

For investors, the message is that the AI trade has not been broken, only repriced. The bullish case is that hyperscale and enterprise spending continues to support semiconductors, software and power infrastructure, giving the DAX and global tech another leg higher. The bearish case is that much of the optimism is already embedded in prices, and any slowdown in spending, margin pressure or weaker macro data could expose crowded positioning.

What happens next will hinge on whether AI-related demand keeps offsetting softer cyclical trends in Europe and the U.S. If chip orders, cloud spending and earnings guidance remain firm, the current bounce could broaden. If not, the market may discover that the recovery in semiconductors and Bitcoin was more a sentiment trade than a durable turn in fundamentals.