Europe's AI infrastructure shares have further to run as hyperscalers are expected to increase spending again next year, according to Goldman Sachs Group Inc.'s Sharon Bell. The strategist sees continued momentum for companies building out the region's artificial intelligence capacity.

Bell's optimism stems from sustained capital expenditure plans by major cloud providers and technology giants. These hyperscalers are driving demand for data centers, semiconductors, and networking equipment across Europe. The investment cycle appears to have legs beyond 2024.

European firms exposed to this buildout include semiconductor equipment makers, data center operators, and connectivity providers. Bell notes that valuation multiples remain reasonable relative to growth prospects. The AI infrastructure theme is still in early innings compared to US counterparts.

Investors should monitor quarterly capex guidance from hyperscalers for confirmation of the spending trajectory. Any slowdown in cloud growth could temper enthusiasm, but current signals point to sustained investment.