Nvidia, the dominant supplier of the processors used to train and run large artificial-intelligence models, reported quarterly revenue that more than doubled from a year earlier, giving European semiconductor stocks a lift on Thursday even as broader regional markets remained mostly flat amid mixed economic signals and lingering inflation concerns.

The Santa Clara, California-based chipmaker said current-quarter revenue should come in above Wall Street expectations and projected fiscal 2028 revenue growth of about 70%. Analysts had been expecting 44% growth. Nvidia shares rose as much as 5.6% in after-hours trading, marking the stock’s first positive post-earnings reaction in several quarters.

NVIDIA Corporation, NVDA

European chip stocks rise on Nvidia results

The strong earnings report flowed through to Europe’s chip sector. ASML gained about 2.5%, while STMicroelectronics, Infineon Technologies, and BE Semiconductors each advanced between 2% and 4%.

The companies supply equipment and components used in chip manufacturing, and their shares have been supported by rising spending from large technology companies on artificial intelligence infrastructure. ASML, based in the Netherlands, is the world’s only maker of the extreme ultraviolet lithography machines required to produce the most advanced chips, while BE Semiconductor supplies the assembly and packaging equipment used in later production stages. Infineon and STMicroelectronics design and manufacture their own chips, serving mainly automotive and industrial customers. Investors are watching that trend for signs of sustained demand across the semiconductor supply chain.

Wider European markets remain cautious

Despite the gains in chip stocks, the broader market tone was cautious. The pan-European Stoxx Europe 600, the region’s most widely followed benchmark, slipped 0.1%. Germany’s DAX was unchanged, France’s CAC 40 fell 0.2%, and London’s FTSE 100 lost 0.4%.

Stronger-than-expected U.S. inflation data kept traders on edge and reinforced expectations that the Federal Reserve could raise interest rates before the end of the year.

German consumer sentiment improves

Economic data in Europe offered a mixed picture. German consumer sentiment improved heading into September, with the index from NIM and GfK rising to -26.6 points.

The increase was supported by better income and economic expectations, although consumers remained cautious about spending. The reading suggests private consumption in Germany, Europe’s largest economy, could recover gradually as wage growth catches up with earlier inflation.

Investors were also looking ahead to French PPI and unemployment figures, along with Eurozone credit activity data. The European Central Bank’s Monetary Policy Meeting Accounts, which provide a detailed record of the Governing Council’s most recent policy discussion, were also due for review for clues on the interest-rate outlook.

Pernod Ricard trims outlook

In corporate news, French spirits maker Pernod Ricard said it expects sales growth to land at the lower end of its forecast range over the next few years, citing continued weakness in its key U.S. market. Pernod Ricard is the world’s second-largest spirits group behind Britain’s Diageo, and the United States is its biggest single market.

Brent crude extends decline

Oil prices continued to fall. Brent crude dropped 0.5% to $87.40 a barrel, the fourth straight daily decline. The move came as reports that Qatar’s prime minister was traveling to Tehran to revive U.S.-Iran diplomatic talks eased fears of supply disruptions through the Strait of Hormuz, the narrow chokepoint between Iran and Oman through which roughly a fifth of the world’s oil passes.

Euro Stoxx 50 futures rose 0.3% in premarket trade, pointing to a modestly positive open for European markets.