Europe midday: Chipmakers boosted by stellar Nvidia

European markets were up on Thursday, but off morning highs, as strong results from US tech giant Nvidia and a fall in US bond yields boosted sentiment, particularly among computer chip makers.

The pan-European Stoxx 600 index was up 0.36% with all major bourses higher. Investors are also awaiting comments from US Federal Reserve Chairman Jerome Powell on Friday at the conclusion of the central bank’s symposium in Jackson Hole, Wyoming.

Falling yields on long-dated US Treasury notes meant borrowing costs also came down, easing investor concerns about persistent inflation and the possibility of central banks keeping monetary policy tighter for longer.

“Despite a very high benchmark, Nvidia has beaten Wall Street’s expectations. The artificial intelligence boom is continuing to catapult demand for the tech company’s complex chips into the stratosphere, with sales of $16bn expected in the three months to October," said Hargreaves Lansdown analyst Sophie Lund-Yates.

"That is streets away from analyst expectations and reflects the seemingly insatiable appetite for Nvidia’s products, which are the leading option for creating AI tools like ChatGPT. Nvidia’s H100 chip, where demand is far outpacing supply, is currently selling for double its original price in the tens of thousands."

The news boosted shares in Dutch chipmaker ASML, STMicroelectronic, and Nordic Semiconductor.

In other equity news, German flavor and fragrance maker Symrise rose after an upgrade from Morgan Stanley.

Crude oil prices fell as business activity data in the US and Europe sparked fears about waning demand, with the benchmark Brent crude below $83 a barrel.

Reporting by Frank Prenesti for Sharecast.com