Investing.com – Shares of European chipmakers rose on Thursday, boosted by quarterly results from AI-focused semiconductor group Nvidia (NASDAQ:) that beat high expectations.
Nvidia's revenue in the three months through April 28 rose 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 number to continue to grow to $28 billion. Analysts had expected a quarterly forecast of $26.8 billion.
Data center revenue, which roughly reflects the performance of AI chips, rose 427% year over year to a record $22.6 billion. GPUs in Nvidia's data center have become an essential part of the computing power that supports generative AI products.
CEO 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 the booming demand for artificial intelligence.
This prospect was lifted by European chipmakers such as Germany's Infineon (ETR:), as well as ASM (AS:) and ASML (AS:) in the Netherlands, while the pan-European technology index was among the best performing sectors in the region.
Meanwhile, gains were posted by Nvidia's Asian suppliers, including memory chip makers SK Hynix (KS:) and Samsung Electronics (KS:), as well as contract semiconductor company TSMC (TW:).