The DAX 40 rose 0.5% to cross the 25,000 mark on Thursday, recovering part of the steep losses recorded in the previous session.
The rebound was largely driven by gains in technology stocks after reports that China plans to allow its leading artificial intelligence companies to purchase a limited number of Nvidia H200 AI chips.
Infineon Technologies gained 3.1%, with AI infrastructure stocks such as Siemens, Siemens Energy an Hochtief also advancing solidly.
Meanwhile, markets continued to monitor developments in the Middle East after fresh cross-border attacks overnight.
While oil prices eased, investors remained concerned that any escalation could revive inflationary pressures.