The Stockholm Stock Exchange recorded a solid advance on Tuesday, recovering from Monday's decline. The rally gathered momentum toward the end of the session, with performance outstripping that of major European markets. Several heavy-weight engineering firms posted strong gains.

At the close, the OMXS30 index was up 1.79 percent at 3,149.91. Shares worth approximately SEK 25.5 billion were traded on the Stockholm Stock Exchange.

Among the major industrial sectors, technology saw the best performance with a 3.2 percent rise. At the other end of the scale, energy trailed the market, falling 1.5 percent.

Among the leading stocks included in the OMXS30 index, Atlas Copco A rose 5.3 percent, while SKF B gained 5.3 percent. The weakest performers were Saab B, down 2.1 percent, and Astra Zeneca, which shed 1.2 percent.

Technology company Sivers Semiconductors has entered into a strategic partnership with Globalfoundries to develop silicon photonics solutions for AI infrastructure. The news triggered a powerful rally in the stock, which surged to a new record high on very high volume. The share price climbed a full 60 percent and has now advanced nearly 2,300 percent since the turn of the year.

Power and automation group ABB is expanding its collaboration with Nvidia to allow data center operators to simulate and optimize power systems for AI infrastructure prior to construction. The partnership builds on the companies' 2025 initiative regarding 800 VDC architecture for next-generation AI data centers. ABB shares rose 3.4 percent.

Lock manufacturer Assa Abloy is expanding its Canadian operations through the acquisition of Sentinel Dock & Door, which had sales of around SEK 1 billion last year. The acquisition is expected to be accretive to earnings per share from the outset. The stock increased 0.6 percent.

Defense company Saab received a new order worth SEK 1.2 billion from the FMV for air defense systems for the Swedish Army's brigades.

Construction group Skanska announced two new deals: an investment of SEK 360 million in Warsaw and an order of the same amount in Tampere. The stock rose 1.0 percent.

Cybersecurity firm Yubico is partnering with OpenAI; starting June 1, the latter will require users in 'Trusted Access for Cyber' to activate Advanced Account Security to access the company's most advanced AI models and extended permissions. Yubico provides hardware-based passkeys via Yubikey. The stock initially rose but pulled back to close 0.2 percent lower.

Software company Octave climbed 8.2 percent, following a strong performance on the New York Stock Exchange on Monday.

In terms of today's analyst coverage, Oddo has initiated coverage of Securitas with an outperform rating and a price target of SEK 210. The stock increased 1.3 percent.