Technology stocks rose sharply on Thursday as investors reacted to strong quarterly results from U.S. chipmaker Nvidia. The Stoxx Europe Tech Index gained 0.8%, while Dutch semiconductor leader ASML saw its shares climb by 2.4%.
In the United States, tech optimism was also high. Nasdaq futures jumped by 2%, and Nvidia stock surged 6% in pre-market trading. The company posted impressive financial results, with revenue rising 69% year-over-year to reach $44 billion.
Despite the record figures, Nvidia CEO Jensen Huang warned of growing pressure from Chinese competitors. U.S. export restrictions on AI chips have been weighing heavily on the company’s business.
Huang explained that Chinese companies are catching up quickly. He pointed to Huawei as a major player making rapid advances. “Huawei has become quite formidable,” he said, adding that many Chinese firms are doubling or even quadrupling their capabilities each year. “The volume is increasing significantly,” Huang noted.
Since April, U.S. President Donald Trump has imposed stricter limits on AI chip exports to China, including a ban on Nvidia’s H20 chip. Nvidia now expects to lose around $8 billion in revenue during the second quarter due to the restrictions. To counter this loss, the company is shifting its focus to the Middle East, where it hopes to secure new deals.
In addition to Nvidia’s results, a recent U.S. trade court decision boosted investor confidence. The court ruled against Trump’s broad tariff policy, which had added tension to international trade. While the White House has already appealed the ruling, markets welcomed the development as a potential turning point in U.S. trade policy.
Another piece of news that lifted market sentiment came from Elon Musk. The Tesla CEO confirmed that he would step down from his government position under the Trump administration. Since January, Musk had led the “Department of Government Efficiency” (Doge), where he pushed for aggressive spending cuts across federal agencies. Following weak Tesla earnings and a failed campaign for a Supreme Court seat, Musk resigned from his post in April. Tesla shares rose 2.6% after the announcement.
Despite ongoing geopolitical uncertainty and policy shifts, investor interest in the tech and AI sectors remains strong. Nvidia’s performance highlights growing global demand for artificial intelligence and advanced chip technology.
Financial analysts also remain optimistic about the sector’s future. Experts say that companies focusing on high-performance chips and AI software have a clear advantage—especially as digital transformation becomes a top priority worldwide.
Still, the coming months will bring new challenges. Investors are closely watching for further export restrictions from the U.S., as well as economic developments in Europe and Asia. But for now, the mood remains positive. The belief in technology-driven growth continues to push markets forward—with Nvidia clearly at the center of the action.