European chip stocks rally on Nvidia boost (updated)
25/05/2023 09:34
(Adds analyst comment, details, updates prices)
MILAN, May 25 (Reuters) - European semiconductor stocks
soared on Thursday after Nvidia NVDA.O reported a
multi-billion revenue beat and booming adoption of artificial
intelligence chips.
Nvidia rocketed as much as 28% on Wall Street in afterhours
trading on Wednesday. That lifted the Silicon Valley company's
market value by about $200 billion, extending its lead as the
world's most valuable chipmaker.
The rally spread to European chip stocks, driving ASM
International ASMI.AS , BE Semiconductor BESI.AS and ASML
Holding ASML.AS up more than 5% to lead gainers on the STOXX
Europe 600 Technology .SX8P index.
"In Europe, as we have argued consistently, semicaps are the
beneficiaries of AI adoption. Specifically, we see ASMI and ASML
as beneficiaries of higher orders," said Bank of America Global
Research analysts led by Didier Scemama.
The European chip companies all make equipment used by
Taiwan's TSMC, 2330.TW the company which makes Nvidia's chips.
ASM International makes atomic layer deposition (ALD) tools,
ASML makes lithography machines that create the circuitry of
chips, and BE Semi makes advanced packaging equipment.
BofA analysts said AI would be a key catalyst for these
companies. They added that other beneficiaries included
Technoprobe TPRO.MI , Comet COTNE.S and Siltronic WAFGn.DE ,
along with Infineon IFXGn.DE and STMicro STMPA.PA .
U.S. firms related to AI also rallied in afterhours on the
back of Nvidia's strong report. Rival chipmaker Advanced Micro
Devices AMD.O jumped 10%. Microsoft MSFT.O and Google parent
Alphabet GOOGL.O , which are both rushing to incorporate
generative AI into their search platforms, each rose about 2%.
(Reporting by Danilo Masoni; Additional reporting by Toby
Sterling in Amsterdam; Editing by Alun John and Clarence
Fernandez)
((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))