Key Takeaways
- ASML, Siemens and SAP are key stocks to benefit from a European AI process boom.
- European stocks can offer advantages as ‘AI adapters’ to make the global ecosystem run more smoothly.
- Companies of all sizes can benefit from the AI revolution.
Investors should look beyond the US tech giants that have dominated the AI boom so far to Europe’s “AI adapters”, says Christoph Berger, chief investment officer for European equities at Allianz Global Investors.
“Although tech stocks in particular have performed very well in the US in recent years, it still makes sense to diversify into Europe,” says Berger.
He says Europe’s role is to provide key technologies to make the AI ecosystem, such as large language models, run more efficiently. And this is particularly pronounced in an area where Europe usually excels, industrial value chains.
One example is the global market leader in semiconductor equipment, ASML, which is based in the Netherlands.
“As one of the key suppliers, ASML ensures that increasingly powerful semiconductors can be produced all over the world. And more powerful semiconductors are in turn needed to generate additional information through artificial intelligence,” Berger says.
‘AI Adapters’ in Companies of All Sizes
While data-driven business models often prevail in the US, industrial applications, efficiency gains and infrastructure investments play a greater role on the continent.
“In Europe, many companies are benefiting from high investments in data centers, for example in the areas of electrification and cooling,” says Berger. Three examples are France’s Schneider Electric SU and Germany’s Infineon IFX and Siemens SIE.
According to Berger, the broad industrial base also shows that AI is not the monopoly of large corporations: “Many small companies can also make their processes much more efficient through AI—these are the so-called AI adapters."
This opens up opportunities for investors beyond the mega-cap stocks. Not only tech heavyweights, but also specialized medium-sized companies and software providers can improve their margins through intelligent automation. “This development is broadly anchored in Europe—AI knows no boundaries,” he says.
“AI is a cross-cutting issue that affects many companies and sectors,” he adds.
Size is less of factor for European AI-focused stocks than whether the business model is threatened by AI or whether it can it be adapted and improved with its help.
This key factor can help investors assess whether a company is an AI winner or loser—regardless of whether it is considered a traditional technology company or not, Berger adds.
Are SAP and Siemens AI Beneficiaries?
SAP SAP and Siemens are companies with particularly high exposure to AI and are among the largest holdings in funds run by Berger.
Although SAP’s shares fell in 2025, it is well positioned technologically as an example of a “AI adapter”, Berger says. “Over 300 million end users regularly access a cloud application from SAP that offers AI-supported tools.”
“This broad user base not only enables enormous amounts of data, but also measurable productivity gains [...] Customers pay a premium for these benefits.”
Wide-moat SAP is considered undervalued according to Morningstar metrics, with a 4-star rating.
In his view, Siemens Healthineers, a medical tech company spun out of Siemens, SHL is also a beneficiary: “Based on the extensive database in diagnostics, AI can generate additional benefits for patients and users here.”
Will the AI Bubble Burst in 2026?
While some market observers are already warning of a possible AI bubble in the US, Berger says these risks are overplayed.
“It would be premature to talk about a broad AI bubble at this stage,” he says.
He remains concerned about how AI spending is being financed in the US through debt capital, as well as the multibillion dollar sums being spent on data centers.
