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AI Boom Lifts Europe Shares Amid Nvidia Watch
2 Jun
Summary
- European shares neared two-week highs, driven by tech and defense.
- Investors awaited Nvidia's earnings for AI infrastructure demand clues.
- ASML anticipates a 'tense' semiconductor market with tight supply.
European stock markets concluded Wednesday trading near their highest point in two weeks, with notable advancements in defense and technology sectors. Investors maintained a keen focus on the forthcoming earnings report from U.S. chip giant Nvidia, anticipating it would offer crucial indications regarding the demand for AI infrastructure.
ASML, a leading semiconductor equipment manufacturer, has projected that the global chip market will experience tightness and supply constraints. This forecast stems from demand for AI, satellites, and robotics exceeding the industry's production capacity. Consequently, European technology stocks experienced a substantial increase of 2.9%.
Defense shares also experienced a significant uplift, rising by 3.2%. This surge was partly influenced by cautious optimism regarding U.S.-Iran negotiations. Separately, the European Union reached a provisional agreement to eliminate import duties on U.S. goods, following a trade deal established in July of the previous year.
