(Bloomberg) -- The euro area’s blue-chip index ended Wednesday at its highest level since May 2001 as ASML Holding NV’s bumper quarterly orders and SAP SE’s forecast-beating results lifted their shares to record highs.

The two tech stocks have nearly 15% weight in the Euro Stoxx 50 and have helped the benchmark wipeout January losses. ASML and SAP gains helped add about €48 billion ($52.3 billion) to the market value of Europe’s tech sector, which soared 4.9% after the top two tech companies signaled booming demand for their industries. 

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Chip equipment maker ASML — a bellwether for the industry’s health — soared nearly 10% as Chief Executive Officer Peter Wennink said he now sees positive signs in the semiconductor industry after a period of slower demand. His comments lifted shares in sector rivals ASM International NV and BE Semiconductor Industries NV. 

SAP’s cloud order backlog — an indicator of cloud revenue to be booked within next 12 months — saw robust growth in the fourth quarter, driving the stock 8% higher.

With European tech valuations still below their five-year averages, these reports could leave room for more gains ahead. 

“Technology has rallied massively, but the stocks are not more much more expensive than last year,” Patrick Armstrong, chief investment officer at Plurimi Wealth LLP, said, predicting that earnings upgrades would support an extension of the rally. 

The Stoxx 600 Index traded 1.2% higher by the close in London. Other sectors to perform well included mining and real estate, while the list of individual stock market gainers featured Siemens Energy AG and EasyJet Plc, both of which delivered positive news on earnings.

Some investors warn there are reasons to be cautious, not least because latest data confirmed the picture of a sluggish euro-area economy. Private-sector activity contracted for an eighth month in January. There is also the possibility the European Central Bank, which meets on Thursday, will hold off cutting interest rates until much later in the year. 

“Investors really want to believe that the party continues and that is why they react actually much more strongly to positive than to negative news at the moment,” said Tatjana Puhan, chief investment officer at Copernicus Wealth Management. 

“However, I would be cautious to jump on this trend, given that investors may be disappointed tomorrow by the ECB,” Puhan added. 

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--With assistance from Henry Ren.

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