European shares rallied and hit fresh highs as investors assessed results overnight from tech giant Nvidia along with another deluge of earnings reports across the continent.
The pan-regional Stoxx 600 index was up 0.19% to 634.66 at 1154 GMT having hit 634.70. Major bourses were higher with the UK’s FTSE 100 also hitting a record and Germany’s DAX rose 0.42% while France’s CAC 40 jumped 0.89%.
Chipmaker Nvidia blew away forecasts with a mammoth fourth quarter as revenue came in at $68bn against expectations of $66bn and lifted sales guidance for the first three months of the year to $78bn from $73bn.
“Nvidia and the semiconductor space has outperformed the broader tech sector so far this year. Nvidia’s results suggest that demand for AI is strong, and fears of an AI bubble are overdone,” said XTB research director Kathleen Brooks.
“Thus, investors could pile into the less loved parts of tech, for example software, before going headfirst into Nvidia.”
In economic news, economic confidence across the eurozone weakened slightly in February, pulling back from a three-year high, despite improvements among consumers and retailers, as sentiment fell in the industrial and services sectors.
The European Commission’s economic sentiment indicator slipped to 98.3 this month from 99.3 in January – its highest since January 2023.
On the equities front, shares in Gerresheimer tanked after the medical products maker on Wednesday said Germany’s financial regulator BaFin is widening its probe into the company’s financial statements.
Belgian chemicals group Syensqo slumped after fourth-quarter core earnings came in below market expectations, while Hikma Pharmaceuticals did the same as it named chair Said Darwazah as chief executive and posted an uplift in annual sales and earnings.
UK grocer and technology group Ocado tumbled as it planned to slash around 1,000 jobs as part of a drive to save £150m in costs after setbacks to its automated warehouse programme rollout.
On the upside, Indra Sistemas jumped after the Spanish tech and defence group lifted earnings guidance and reported better-than-expected 2025 results. German sportswear giant Puma also gained after results.
Reporting by Frank Prenesti for Sharecast.com