European equity markets recorded modest gains in November, but rising volatility was a defining theme. The recent Republican electoral victory in the United States raised concerns among investors, particularly in export-oriented sectors such as automotive and chemical products, which face potential import tariffs. Nevertheless, industries like finance, industrial goods, and IT demonstrated notable resilience, supporting the broader market.
According to Franz Weis, Chief Investment Officer and Analyst at Comgest, one of the most strategic sectors for Europe’s future growth remains semiconductors.
ASML, a European leader in the field, reaffirmed its ambitions during its recent Capital Markets Day, presenting clear goals for 2030. Current estimates project an earnings growth of around 15% by the decade’s end, driven by strong semiconductor demand, particularly for artificial intelligence (AI) applications.
EssilorLuxottica also maintained its upward trend, supported by innovations like the Stellest myopia control lenses, which bolstered revenues in Q3 2023. The company’s collaboration with Meta on “smart glasses” further enhances its growth potential.
Another standout performer was Halma, which saw a significant stock rise following strong half-year results. Organic revenue growth reached 11.5%, while EBIT margins improved by 17%. Halma’s photonics division continues to benefit from the expansion of data center infrastructure in the United States.
Franz Weis’ analysis highlights how the semiconductor sector will remain pivotal to European economic growth in the coming years, driven by technological demand and continuous innovation.
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