Best european tech stocks to invest in Q2 2025

Europe's tech sector continues to thrive, offering strong investment opportunities across defense technology, enterprise software, and semiconductor manufacturing. Leading companies in this space are driving innovation and digital transformation across various industries.

Kongsberg is a key player in defense and maritime technology, benefiting from increasing global defense budgets. SAP SE remains a leader in enterprise software, helping businesses optimize operations with advanced cloud and AI solutions. ASML dominates the semiconductor industry, providing cutting-edge lithography equipment crucial for chip production worldwide.

As demand for advanced technology grows, these companies are well-positioned to capitalize on industry trends. With a strong mix of defense, software, and semiconductor innovation, these European tech stocks present compelling investment opportunities for Q2 2025.

Roboforex R-Trader gives you access to over 10,000 stocks, ETFs, commodities, and crypto. All of the stocks mentioned in this article are available for purchase there.

Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • ASML (ASML)

    ASML Holding N.V. is a Dutch multinational company headquartered in Veldhoven, the Netherlands. Founded in 1984, ASML has grown to become a world leader in the development and manufacturing of advanced photolithography systems used in semiconductor production. The company's innovations have been critical in enabling the manufacturing of smaller, more powerful microchips that power modern electronic devices.

    ASML specializes in extreme ultraviolet (EUV) lithography technology, which is essential for producing the most advanced semiconductor nodes. Its systems are crucial for the fabrication of high-performance chips used in industries such as telecommunications, automotive, and consumer electronics. With a strong focus on research and development, ASML plays a central role in shaping the future of the semiconductor industry by enabling Moore's Law and driving technological advancements in microchip production.

    ASML financial statements

    Analysts recommendation: 1.62

    Financial Health

    • Return on assets (ROA): 17.32%
    • Return on equity (ROE): 48.13%
    • Return on investment (ROI): 35.66%

    Profitability

    • Gross margin: 51.27%
    • Operating margin: 31.91%
    • Net profit margin: 26.78%

    Growth

    • EPS (past 5 years): 24.74%
    • EPS (current): 20.78
    • EPS estimate (next quarter): 5.54
    • EPS growth (this year): 22.83%
    • EPS growth (next year): 21.02%
    • EPS growth (next 5 years): 20.98%
    • EPS growth (quarter-over-quarter): 30.45%
    • Sales growth (past 5 years): 19.23%
    • Sales growth (quarter-over-quarter): 26.95%

    💡 Why invest in ASML?

    ASML's unique position at the heart of the semiconductor industry makes it an intriguing investment prospect. Here's why it could be a fruitful move:

    • Market Monopoly: ASML boasts a near-monopoly on high-end lithography systems, the essential tools for chipmaking giants. This translates to consistent revenue, unmatched brand recognition, and a formidable competitive edge.
    • Growth Engine: Organic innovation and strategic acquisitions fuel ASML's relentless growth. Its groundbreaking EUV technology, like a futuristic paintbrush for ultra-miniature circuits, unlocks faster, denser chip production and guarantees future market dominance.
    • Financial Rock Star: With impressive margins and a healthy cash flow, ASML stands on a rock-solid financial foundation, offering generous dividends for investors and the potential for strategic future investments.
    • Tech Trailblazer: From EUV to advanced metrology and inspection tools, ASML consistently pioneers cutting-edge solutions, ensuring its relevance in the ever-evolving chipmaking landscape and opening doors to new growth opportunities.

    🐌 Key considerations before investing in ASML

    While ASML's strengths are undeniable, some factors merit thoughtful consideration:

    • Valuation Concerns: The company is currently trading near all-time highs, meaning its price might already reflect much of its future growth potential. Waiting for a more attractive entry point might be prudent.
    • Cyclical Industry: The semiconductor sector is prone to boom-and-bust cycles, so economic downturns could impact ASML's revenue and profitability. Stay informed about broader economic trends and market fluctuations.
    • Intensifying Competition: Tech giants and emerging players are increasingly vying for market share, potentially challenging ASML's dominance in certain segments. Monitor competitor advancements and ASML's strategies to maintain its edge.
    • Geopolitical Risks: ASML's reliance on specific global trade routes and its role in a sensitive technology landscape make it susceptible to geopolitical tensions and regulations. Stay informed about international developments and their potential impact.

    Final thoughts on ASML

    Investing in ASML is a bet on the future of technology itself. Its market dominance, innovation engine, and financial strength paint a compelling picture for long-term investors. However, the current valuation, cyclical nature of the industry, emerging competition, and geopolitical risks warrant careful consideration. Thorough research and analysis of ASML's future plans and market dynamics are crucial before diving in. Remember, chipmaking might be microscopic, but the investment decisions surrounding it can have macroscopic consequences for your portfolio.

  • Kongsberg (KOZ)

    Kongsberg Gruppen is a leading Norwegian technology and defense company specializing in advanced systems for the defense, aerospace, maritime, and energy industries. Headquartered in Kongsberg, Norway, the company was founded in 1814, making it one of the oldest industrial enterprises in the country. Over its long history, Kongsberg Gruppen has evolved from a small weapons factory to a global leader in cutting-edge technology, serving both civilian and military markets.

    The company's core business revolves around delivering innovative solutions in areas such as defense systems, autonomous technologies, and maritime operations. Kongsberg's product portfolio includes precision-guided weapons, remote weapon stations, subsea robotics, and advanced simulation systems. With a strong commitment to sustainability and technological excellence, Kongsberg Gruppen supports its customers worldwide in tackling complex operational challenges in demanding environments.

    💡 Why invest in Kongsberg?

    Kongsberg Gruppen offers several compelling reasons to consider investing:

    • Diverse Revenue Streams: Kongsberg's strong presence in defense, maritime, and digital solutions reduces reliance on a single sector and enhances stability.
    • Innovation in Maritime Automation: The company leads in providing autonomous and digital solutions for the maritime industry, addressing increasing demand for efficiency and sustainability.
    • Strong Defense Portfolio: With advanced weapon systems and partnerships with NATO countries, Kongsberg is well-positioned to benefit from global defense spending.
    • Focus on Sustainability: Kongsberg integrates green technologies and energy-efficient systems into its product offerings, aligning with global sustainability goals.

    🐌 Key considerations before investing in Kongsberg

    However, prospective investors should weigh the following challenges:

    • Geopolitical Risks: As a defense contractor, Kongsberg is exposed to political and regulatory risks tied to defense spending and international relations.
    • High R&D Costs: The company's commitment to innovation requires significant investment in research and development, which can pressure margins.
    • Reliance on Key Markets: A substantial portion of Kongsberg's revenue comes from Europe, making it vulnerable to economic or political instability in the region.
    • Competitive Industry: Kongsberg faces competition from global giants in both the defense and maritime sectors, which may impact its market share.

    Final thoughts on Kongsberg

    Kongsberg Gruppen ASA is a technologically advanced and diversified company with strong positions in defense, maritime, and digital industries. Its focus on innovation, sustainability, and partnerships ensures relevance in a rapidly evolving market. However, investors should weigh geopolitical and economic risks alongside the company's strengths when considering it as an investment opportunity.

  • Hensoldt (HAG)

    Hensoldt is a German defense technology company specializing in sensor solutions, radar systems, and electronic warfare technologies. Founded in 2017 as a spin-off from Airbus Defence and Space, the company is headquartered in Taufkirchen, Germany. With a strong presence in the global defense and security sector, Hensoldt provides advanced surveillance and reconnaissance systems for military and civilian applications.

    The company's core business revolves around the development of high-performance radar, optronics, and avionics systems. Hensoldt supplies critical technologies for fighter aircraft, naval vessels, and ground-based defense systems, enhancing situational awareness and threat detection. Additionally, the company is investing in cybersecurity and AI-driven defense solutions, positioning itself as a key innovator in modern security and surveillance technologies.

    💡 Why invest in Hensoldt?

    Hensoldt offers several compelling reasons to consider investing:

    • Strong Defense Industry Position: A key supplier of advanced sensor and radar systems to European and NATO defense programs.
    • Growing Defense Budgets: Increasing military spending in Europe and worldwide supports long-term demand for its products and services.
    • Technological Innovation: Focuses on cutting-edge defense electronics, cybersecurity, and artificial intelligence-driven surveillance solutions.
    • Strategic Partnerships: Collaborates with major defense contractors and government agencies, securing long-term contracts and stable revenue streams.

    🐌 Key considerations before investing in Hensoldt

    However, prospective investors should weigh the following challenges:

    • Dependence on Government Contracts: A large portion of revenue comes from defense contracts, making it vulnerable to political and budgetary changes.
    • Geopolitical Risks: Exposure to international defense markets subjects the company to export restrictions, regulatory hurdles, and shifting alliances.
    • Competitive Industry: Faces competition from larger defense firms such as Thales, Leonardo, and Raytheon Technologies.
    • Market Volatility: As a relatively new publicly traded company, its stock price can be affected by defense sector fluctuations and investor sentiment.

    Final thoughts on Hensoldt

    Hensoldt is a key player in the European defense technology sector, benefiting from rising defense budgets, strong industry partnerships, and technological expertise. However, its reliance on government contracts, geopolitical uncertainties, and competitive pressures pose investment risks. Investors seeking exposure to the growing defense and security industry should weigh these factors carefully.

  • Norbit (4NK)

    Norbit is a Norwegian technology company specializing in intelligent solutions for maritime, defense, and industrial applications. Founded in 1995, the company is headquartered in Trondheim, Norway. With a strong focus on innovation, Norbit has developed a diverse portfolio of high-tech products catering to global markets.

    The company's core business revolves around three main segments: Oceans, Connectivity, and Product Innovation & Realization. In the Oceans division, Norbit provides advanced sonar and hydrographic systems for subsea mapping and surveillance. Its Connectivity segment focuses on wireless communication solutions, including smart tracking and monitoring technologies. Meanwhile, the Product Innovation & Realization segment supports industrial clients with customized electronics and sensor solutions. Through these divisions, Norbit continues to drive technological advancements in demanding industries worldwide.

    💡 Why invest in Norbit?

    Norbit ASA offers several compelling reasons to consider investing:

    • Diverse Business Segments: Operates across multiple high-tech industries, reducing reliance on a single revenue stream.
    • Strong R&D Focus: Continuous investment in research and development drives innovation and competitive advantages.
    • Growing Maritime Technology Market: Expanding demand for sonar and monitoring solutions benefits its Oceans division.
    • Global Expansion Strategy: Increasing international presence supports long-term growth opportunities.

    🐌 Key considerations before investing in Norbit

    However, prospective investors should weigh the following challenges:

    • Market Dependence: Relies on specific industries, such as maritime and infrastructure, which are subject to economic fluctuations.
    • Competition from Larger Players: Faces competition from well-established technology and defense firms in its key markets.
    • Supply Chain Risks: Dependence on electronic components and specialized materials could lead to production delays and cost increases.
    • Regulatory and Political Risks: Exposure to government contracts and regulations may impact revenue stability.

    Final thoughts on Norbit

    Norbit ASA is a promising industrial technology company with a strong focus on innovation and diversified revenue streams across maritime, infrastructure, and IoT markets. While it benefits from R&D investments and global expansion, challenges such as market dependency, competition, and regulatory risks should be considered. Investors looking for exposure to specialized technology sectors may find Norbit an intriguing long-term opportunity.

  • SAP SE (SAP)

    SAP is a global leader in enterprise software solutions, specializing in business applications that help organizations manage operations, customer relations, and data analytics. The company was founded in 1972 in Weinheim, Germany, by five former IBM engineers and is now headquartered in Walldorf, Germany. Over the decades, SAP has grown into one of the world's largest software companies, serving businesses across industries in more than 180 countries.

    SAP's core business revolves around enterprise resource planning (ERP) software, with its flagship product, SAP S/4HANA, enabling companies to integrate and streamline business processes. The company also provides cloud-based solutions, customer experience management, supply chain optimization, and artificial intelligence-driven analytics. As a leader in digital transformation, SAP continues to innovate in areas such as sustainability, automation, and intelligent data processing to help businesses operate more efficiently in an evolving digital economy.

    💡 Why invest in SAP SE?

    SAP offers several compelling reasons to consider investing:

    • Market Leadership in Enterprise Software: SAP dominates the global ERP market, with a strong presence in Fortune 500 companies and enterprises across various industries.
    • Transition to Cloud-Based Services: The company's shift toward cloud computing, especially with SAP S/4HANA, provides long-term growth potential and recurring revenue streams.
    • Strong Financial Performance and Stability: SAP generates consistent revenues from software subscriptions and maintenance, ensuring a stable income base.
    • Expanding AI and Data Analytics Capabilities: The integration of AI and machine learning into its software portfolio enhances automation and decision-making for customers.

    🐌 Key considerations before investing in SAP SE

    However, prospective investors should weigh the following challenges:

    • Slow Cloud Adoption Compared to Competitors: While making progress, SAP faces strong competition from cloud-native companies like Microsoft, Salesforce, and Oracle.
    • High Implementation Costs for Customers: Deploying SAP's enterprise solutions can be expensive and complex, making it challenging for smaller businesses to adopt.
    • Regulatory and Compliance Challenges: As a global software provider, SAP must navigate strict data privacy laws and evolving cybersecurity regulations.
    • Dependence on Large Enterprises: A significant portion of SAP's revenue comes from multinational corporations, making it vulnerable to economic downturns that impact enterprise spending.

    Final thoughts on SAP SE

    SAP is a dominant force in enterprise software, benefiting from its extensive client base and continued expansion into cloud computing and AI-driven solutions. While competition in the cloud sector remains a challenge, its strong financial performance and market leadership make it a solid investment choice. Investors seeking exposure to business digitalization and cloud transformation trends may find SAP an attractive long-term opportunity.

  • Adyen (XETR:1N8)

    Adyen is a global financial technology company specializing in payment processing, risk management, and digital banking solutions for businesses. The company was founded in 2006 in the Netherlands by a group of entrepreneurs, including Pieter van der Does and Arnout Schuijff. Headquartered in Amsterdam, Adyen has grown into one of the leading payment platforms, serving major clients such as Spotify, Netflix, and eBay.

    Adyen’s core business revolves around providing a seamless, end-to-end payment infrastructure that supports online, in-store, and mobile transactions. Its technology enables businesses to accept a wide range of payment methods, including credit cards, digital wallets, and local payment solutions, while also offering fraud prevention and data-driven insights. With a focus on innovation and scalability, Adyen continues to expand its global reach, helping merchants streamline their payment operations and enhance customer experiences.

    💡 Why invest in Adyen?

    Adyen offers several compelling reasons to consider investing:

    • Strong Growth Potential: Adyen benefits from the global shift to digital payments, with increasing e-commerce transactions driving revenue growth.
    • Scalable Business Model: The company’s unified platform is highly scalable, allowing it to efficiently serve both small businesses and large enterprises worldwide.
    • High-Profile Client Base: Adyen processes payments for major companies like Netflix, Spotify, and Microsoft, reinforcing its reputation and revenue stability.
    • Operational Efficiency: By operating its own payments infrastructure, Adyen minimizes costs and enhances transaction speed compared to competitors relying on third-party systems.

    🐌 Key considerations before investing in Adyen

    However, prospective investors should weigh the following challenges:

    • Competitive Industry: The digital payments sector is highly competitive, with major players like PayPal, Stripe, and traditional banks posing significant threats.
    • Regulatory Challenges: As a global payments company, Adyen must navigate complex financial regulations and compliance requirements in multiple jurisdictions.
    • Economic Sensitivity: Consumer spending trends directly impact payment volumes, making Adyen vulnerable to economic downturns or recessions.
    • High Valuation Risks: Adyen’s stock has historically traded at high valuations, which could lead to volatility if growth expectations are not met.

    Final thoughts on Adyen

    Adyen is a leading force in the digital payments industry, offering a scalable and efficient platform that caters to a diverse range of businesses. Its strong client base and focus on innovation provide a solid foundation for long-term growth, particularly as digital transactions continue to expand globally. However, regulatory risks, competition, and economic fluctuations remain key challenges that investors should consider before investing.