Infineon starred in a buoyant European semiconductor sector this morning after two brokers predicted higher earnings for the German chipmaker, the latest hint of a brighter future for the mangled industry.
Investors also took their cue from a surge among shares in Asian peers like electronics conglomerate Toshiba and Fujitsu, after Deutsche Securities revised up its outlook for the global chip market.
Infineon shares jumped some six per cent in heavy volume in Europe after investment banks Merrill Lynch and JP Morgan both boosted their earnings forecasts.
Stock in Dutch firm ASML, which makes equipment for the semiconductor industry, rose 5.2 per cent in early trading, setting its highest level for six months.
Europe's largest chipmaker STMicroelectronics traded up 3.7 per cent and Swiss technology group Unaxis, which supplies equipment to chipmakers, rose 4.6 percent.
The niche players outshone the broader European technology sector which rose 2.8 per cent.
Reflecting better times, the world's largest contract microchip maker TSMC posted strong June revenues on Monday that helped second-quarter sales rise 13 percent.
In addition, the cost of dynamic random access memory (DRAM) chips used in computers has recovered well from the two-month lows set in June.