Europe open: Chipmakers lead rally after Nvidia results

23rd May 2024 08:09

(Sharecast News) - European stocks rose in early trade on Thursday, with chipmakers in the black after solid results from US tech giant Nvidia.

At 0850 BST, the benchmark Stoxx 600 index and Germany's DAX were both up 0.3%, while France's CAC 40 was 0.4% firmer.

Semiconductor stocks ASML and Infineon were both higher after Nvidia's first-quarter earnings beat expectations, with revenue up a whopping 262%.

Dan Coatsworth, investment analyst at AJ Bell, said: "Expectations were high for Nvidia in the run-up to its latest results so to smash forecasts is a major achievement. That makes it six quarters in a row it has beaten the consensus earnings estimate and seven consecutive quarters for revenue. The chip giant is riding a gigantic wave that shows little sign of losing power.

"Nvidia's earnings forecasts had already been upgraded six times by analysts since the start of January, according to Stockopedia data, and the latest results means financial models will have to be tweaked upwards again.

"A ten-for-one stock split should appeal to retail investors, making an individual share in Nvidia more affordable to the masses. Issuing more shares will automatically lower the share price and make it appear less expensive."

Still to come, the eurozone manufacturing PMI for May is due at 0900 BST.