The DAX 40 edged down 0.2% to trade below 25,800 on Tuesday, as investors paused after a five-day rally that sent the index to record highsTechnology stocks faced renewed selling, led by semiconductor shares, as investors focused on valuation concerns despite Samsung Electronics reporting record-high quarterly operating profit and strong guidance.
Infineon Technologies slipped 4.1%, while AI-related companies Hochtief and Siemens declined 2.0% and 1.1%, respectively.
Siemens Energy slipped over 6% after Barclays downgraded the AI equipment makers to "underweight" from "equal-weight".
Meanwhile, the defense sector edged higher as investors anticipated fresh commitments to higher military spending at the NATO summit.