While Nvidia, AMD, and Broadcom dominate headlines, a quieter revolution is unfolding across Europe. A group of companies supplying the physical backbone of artificial intelligence—lasers, optical chips, testing equipment, and servers—has delivered extraordinary stock-market returns in 2026, with gains ranging from 159% to over 2,200%.
These firms are not household names, but they occupy critical niches in the AI supply chain. Their success reflects a broader shift: as hyperscale data centres expand, the demand for specialised hardware that moves data between GPUs, tests processors, and powers edge computing has surged.
From Phones to Photonics: Nokia's AI Pivot
Nokia Oyj, the Finnish telecoms equipment maker, has risen 159.51% year to date. Once synonymous with mobile phones, the company now focuses on optical-transport and IP-networking gear—essential for the high-speed data transfer inside AI data centres. The turning point came in October 2025, when Nvidia took a $1bn equity stake and announced a joint development partnership. In the first quarter of 2026, Nokia's net sales to AI and cloud customers jumped 49% year on year, now accounting for about 8% of group revenue. Optical Networks grew 20%, and management raised full-year guidance for network infrastructure to 12%–14% growth.
ams-OSRAM AG, the Austrian-German sensor and optics specialist, has surged 175% as investors bet on its pivot toward AI photonics. In May, the company signed a development agreement with a leading AI photonics customer to commercialise optical interconnects for data centres. First-quarter 2026 semiconductor revenue rose 9% year on year, reinforcing confidence in its growing role.
Testing and Edge Computing
Italian firm Technoprobe S.p.A., the world leader in probe cards for chip testing, has climbed 184.26%. Demand for AI processor validation has driven record results: full-year 2025 revenue rose 16% to €628m, and the first quarter of 2026 hit about €187m, up 19% year on year. Bank of America upgraded the stock to a buy in May, citing earnings growth tied to graphics processors.
Cambridge-based Raspberry Pi Holdings plc has risen 198.63%. The company's low-cost single-board computers are increasingly used in industrial edge computing and AI agents. Revenue rose 25% to $323.2mn in 2025, and Jefferies lifted its 2026 revenue forecast 42% to $511mn. However, analysts warn the shares trade near 50 times forward earnings, carrying meme-stock characteristics.
STMicroelectronics, the Swiss-headquartered semiconductor giant, is up 204.28% and is the largest company on the list. In February, it signed a multi-year, multi-billion-dollar deal with Amazon Web Services to supply compute infrastructure for cloud and AI. Data-centre revenue is expected to exceed $500mn in 2026 and surpass $1bn in 2027. First-quarter 2026 net revenues rose 23% to $3.10bn, with radio-frequency and optical communications up 34%.
German AIXTRON SE, a supplier of deposition equipment for chip manufacturing, has also benefited from the AI boom, though its gains are more modest. The company's tools are used to produce advanced semiconductors, and it has seen increased orders from data-centre chipmakers.
These gains are not all backed by current earnings. Several companies remain loss-making or trade on future expectations. Investors are effectively betting that AI infrastructure spending will continue to expand rapidly, a wager that carries risks if the pace of data-centre construction slows. For now, Europe's niche suppliers are proving that the AI revolution extends far beyond Silicon Valley.
For context on how AI is reshaping other sectors, see our coverage of AI-powered drone swarms for subsea infrastructure and the latest from Nvidia's GTC Taipei.
