The FTSE MIB rose 0.8% to close at 52,819 on Friday, with gains broad-based across sectors.
Amplifon led the advance, climbing 4.7%, followed by Lottomatica (4.0%).
Saipem gained 3.6% after announcing a new contract through its joint venture.
AI-related stocks also outperformed ahead of financial statements, lifting Prysmian (3.0%) and STMicroelectronics (1.5%).
Data centers-linked demand extended gains for utilities, led by A2A (2.0%) and Enel (1.4%).
Leonardo added 1.1% after its Edgewing joint venture secured a £4.6 billion contract, while Avio and Fincantieri each rose around 1%.
Banks remained supported as expectations of further interest rate hikes eased, with Mediobanca and BPER Banca both up 1.1%, and Banca Mediolanum gaining 0.9%.
Insurers also advanced, led by Unipol (1.5%) and Generali (0.8%).
On the downside, Stellantis fell 3.6% while luxury stocks lagged, with Brunello Cucinelli down 1.1%.
For the week, the index gained 3.85%, rebounding from the previous week's decline.