Richard Parks Nvidia’s strong quarterly earnings on Thursday boosted global technology stocks, highlighting renewed investor confidence in AI and semiconductor sectors. Nvidia reported a 69% rise in revenue to $44 billion, surpassing Wall Street’s expectations. This surge pushed the Stoxx Europe Tech Index up by 0.8%, while Dutch chip equipment maker ASML’s shares climbed 2.4%. In the US, Nasdaq futures rose 2%, with Nvidia stock jumping 6% in pre-market trading.
Nvidia’s CEO Jensen Huang warned about growing competition from Chinese tech firms. Despite strong results, the company expects an $8 billion revenue loss next quarter due to US export restrictions on AI chips sold to China. Huang noted that Chinese companies, including Huawei, are rapidly advancing their AI capabilities, doubling or quadrupling annually. He stressed China’s importance, calling it home to the world’s largest population of AI researchers.
Trade policy shifts also influenced the market. A recent US trade court ruling challenged the broad tariffs imposed during the Trump administration. Though the Biden administration plans to appeal, the decision has injected optimism into the tech sector. This legal development has complicated the trade environment but helped ease investor concerns temporarily.
Tesla shares rose 2.6% after CEO Elon Musk announced his departure from the Trump administration’s “Department of Government Efficiency” (Doge). Musk’s exit followed Tesla’s weak earnings and an unsuccessful attempt to back a Republican Supreme Court candidate. His role focused on reducing public sector spending, and his resignation marks a significant political shift.