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Europe's Tech Stars Shine Despite Gloom
15 Dec, 2025
Summary
- SAP, ASML, Klarna, and Spotify are key European tech stocks.
- Analysts see significant upside potential for these companies.
- Europe faces challenges in nurturing its tech sector.
European public markets are grappling with criticism as tech companies increasingly seek opportunities abroad. Despite this challenge, global technology research head Dan Ives identifies four European tech giants as ones to watch: German software firm SAP, Dutch chip equipment supplier ASML, Swedish music streaming platform Spotify, and Swedish buy-now-pay-later company Klarna.
Analysts foresee significant upside for these companies. SAP's AI offerings and operational efficiency are expected to support commercial momentum, while ASML, a crucial player in advanced chip manufacturing, is already experiencing a notable stock surge this year. Klarna, despite a recent stock dip, is targeted for substantial growth, having exceeded third-quarter revenue expectations.
Spotify has also seen strong stock performance and revenue growth, with projections of potential subscription price increases in 2026 that could further boost its financials. These outlooks highlight a potential resurgence for Europe's tech sector, even as it navigates broader continental challenges in competing as a global tech hub.
