BUZZ-European tech stocks: please reboot

Heightened expectations are colliding with lackluster results at Europe's blue chip technology companies although modestly better prospects for some may help in the longer term.

** Over past week ASML, Ericsson (Xetra: ERCA.DE - news) and SAP (NYSE: SAP - news) have all missed while ARM Holdings (LSE: ARM.L - news) managed to meet estimates.

** Sharp drops in stock prices (except SAP, already down 7.4% this year) following results, point to crowded positioning.

** Ericsson's 6.7% slide and ASML's 5.2% drop were both near-2 standard deviation moves. ARM fell more than 3 percent. http://link.reuters.com/myd78v , http://link.reuters.com/qyd78v

** On the brighter side, more upbeat comments from some about rest of the year with SAP optimistic about cloud computing, ARM seeing a recovery in smartphone demand in H2 while Ericsson pinning hopes on 4G.

** Projected earnings growth for IT stocks are expected to grow at quickest clip across Europe, according to StarMine. For semiconductor stocks earnings are seen nearly doubling. (RM (LSE: RM.L - news) : francesco.canepa.thomsonreuters.com@reuters.net; RM: vikram.subhedar.thomsonreuters.com@reuters.net)