European Tech Stocks Miss Out on AI Frenzy as Earnings Falter

The article discusses the underperformance of European tech stocks compared to their US counterparts in the past six months. The key points are: 1. European tech stocks have significantly lagged behind US tech stocks during this period. 2. The main reason for this underperformance is the weaker earnings momentum of European tech companies compared to their US peers. 3. This divergence in earnings performance is due to factors such as the European tech sector's relative lack of exposure to the artificial intelligence (AI) trend, which has been a major driver of US tech stock performance. 4. Additionally, European tech companies have faced challenges such as supply chain disruptions and higher costs, which have weighed on their earnings. 5. The article suggests that the gap between European and US tech stocks is likely to persist until European companies can demonstrate stronger earnings growth and catch up with the AI-driven momentum in the US tech sector.