Investing.com – Shares of European chipmakers rose on Thursday as artificial intelligence semiconductor group Nvidia’s (NASDAQ:) quarterly results beat sky-high expectations.
Nvidia’s revenue in the three months to April 28 rose 262% from a year earlier to $26 billion, beating Wall Street’s estimate of $24.7 billion. For the current quarter, the California-based company expects revenue to continue rising to $28 billion. Analysts had forecast a quarterly forecast of $26.8 billion.
Data center revenue, which roughly reflects the performance of their AI chips, rose 427% year over year to a record $22.6 billion. Nvidia’s data center GPUs have become an important part of the computing power behind generative AI products.
CEO Jensen Huang later told investors that Nvidia will see additional revenue from the launch of its Blackwell line of chips this year, hinting that growing demand for AI will continue.
The outlook supported chipmakers in Europe such as Germany’s Infineon (ETR:) and ASM (AS:) and ASML (AS:) in the Netherlands, while the pan-European technology index was one of the region’s best-performing sectors.
Meanwhile, gains were driven by Nvidia’s Asian suppliers, including memory chip makers SK Hynix (KS:) and Samsung Electronics (KS:), as well as contract semiconductor firm TSMC (TW:).