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European chipmakers gain after Nvidia posts soaring revenues

Published 05/23/2024, 05:23 AM
© Reuters

Investing.com -- Shares in European chipmakers rose on Thursday, buoyed by quarterly results from artificial intelligence-focused semiconductor group Nvidia (NASDAQ:NVDA) that topped sky-high expectations.

Nvidia's revenue in the three months to April 28 soared by 262% from a year ago to $26 billion, beating Wall Street estimates of $24.7 billion. In the current quarter, the California-based company expects the top-line figure to continue growing to $28 billion. Analysts had pencilled in a quarterly forecast of $26.8 billion.

Data center revenue, which roughly reflects the performance of its AI chips, spiked by 427% year-on-year to a record $22.6 billion. Nvidia's data center graphics processing units have become essential parts of the computing power undergirding generative AI products.

Chief Executive Jensen Huang later told investors that Nvidia will be further boosted by "a lot" of revenue this year from the launch of its Blackwell line of chips, hinting that there will be no let-up in booming AI demand.

The prospect lifted chipmakers in Europe like Germany's Infineon (ETR:IFXGn), as well as ASM (AS:ASMI) and ASML (AS:ASML) in the Netherlands, while the pan-European tech index was among the best performing sectors in the region.

Meanwhile, gains were posted by Nvidia's Asian suppliers, including memory chip manufacturers SK Hynix (KS:000660) and Samsung Electronics (KS:005930), as well as contract semiconductor firm TSMC (TW:2330).

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