Global stock markets saw gains in the technology sector on Thursday after U.S. chipmaker Nvidia Corp. released its fourth-quarter earnings and a revenue forecast that exceeded analyst expectations. The announcement, made after the U.S. market close on Wednesday, was attributed by the company to high demand for its processors used in artificial intelligence.
In response to the report, Nvidia’s shares rose significantly in after-hours trading. The company projected first-quarter revenue of approximately $24 billion, surpassing the $22.17 billion average forecast by market analysts surveyed by LSEG, a global provider of financial markets data. The company also reported fourth-quarter revenue of $22.1 billion, an increase of 265% from the same period a year earlier.
The results influenced market performance across Asia and Europe. Japan’s Nikkei 225 index rose more than 2% on Thursday to close at 39,098.68, surpassing its previous record high set in 1989. In Europe, the STOXX 600 index also reached a record high during morning trade. Futures for U.S. stock indices, including the S&P 500 and the tech-heavy Nasdaq, also pointed to a higher open.
Other companies linked to the artificial intelligence sector recorded stock price increases following Nvidia’s announcement. Companies including Super Micro Computer and Advanced Micro Devices (AMD) saw their share values rise in pre-market trading.
The market activity occurred as investors also monitored communications from central banks. Minutes from the U.S. Federal Reserve’s January 30-31 policy meeting, released Wednesday, indicated that most policymakers were concerned about the risks of lowering interest rates prematurely. The official record showed that officials wanted to see more data to confirm that inflation was returning to their 2% target before considering rate reductions.
In Europe, economic data provided a mixed picture. Flash composite Purchasing Managers’ Index (PMI) data for the eurozone, a measure of business activity, showed a slight improvement in February but remained in contraction territory for the ninth consecutive month.
The market movements reflect investor focus on the earnings of major technology corporations and their potential impact on the broader economy, alongside ongoing assessments of inflation data and central bank policy outlooks.
