The demand for high-performance processors for artificial intelligence helped Nvidia deliver a surprisingly strong quarterly result. To accelerate growth, the world's largest chipmaker plans to increase its investments. Shares rose by just over one percent in pre-market US trading, while the European tech index advanced by 0.6 percent. Nvidia's results are both a blessing and a curse, said Jochen Stanzl of Consorsbank. “If AI expansion proceeds faster than expected, the likelihood increases that AI disruption will also happen more quickly.”
Investors speculate that AI could fundamentally change or replace existing business models or working methods with more efficient alternatives. As a result, stocks across many sectors have suffered significant losses in recent weeks. On Thursday, Salesforce shares fell by four percent in pre-market US trading after the SAP rival's targets for the current fiscal year fell short of market expectations. Investors fear that AI could render traditional business software obsolete.
ALLIANZ AND MÜNCHENER RÜCK UNDER PRESSURE AFTER EARNINGS
But it wasn't just US corporate results moving the market on Thursday—numerous German companies also drew attention. In the Dax, Allianz failed to impress investors despite a record profit. Shares lost as much as 2.4 percent. According to one trader, the insurer's 2026 profit target, which is typically based on the previous year's operating profit, was disappointing. The company forecasted EUR 17.4 billion plus or minus a billion. Shares of Münchener Rück fell even more sharply, dropping by up to 4.1 percent. With a group result of EUR 6.12 billion, the reinsurer surpassed both last year's figure and its own target, but fell short of analysts' estimates, who had expected EUR 6.21 billion from the world's second-largest reinsurer.
Freenet shares also plunged after the release of its financial results. The telecommunications and TV provider's shares slumped by more than twelve percent at times in the MDax. Operating profit and free cash flow fell short of expectations, commented analyst Shekhan Ali of Berenberg Bank.
Puma, on the other hand, saw buying interest sparked by a smaller-than-expected operating loss. The stock climbed as much as nine percent in the MDax. Adidas shares gained 1.6 percent in the Dax.
INDRA IGNITES STOCK RALLY ON SPANISH EXCHANGE
On the Spanish stock exchange, Indra ignited a stock rally. The Spanish defense and technology company reported more than a doubling of its order backlog for 2025 and robust growth across all business segments. Shares soared by more than 20 percent. In Paris, investors snapped up shares of industrial group Schneider Electric, which reported a stronger-than-expected core profit. The stock rose five percent.
Investors also kept an eye on geopolitics. Hopes were pinned on the US and Iran finding a diplomatic solution in their third round of nuclear talks. The US has threatened military action if no agreement is reached. The oil market, in particular, is closely monitoring the negotiations. There are concerns about supply disruptions in the event of military conflict. The outcome of the talks will be crucial for oil price developments, ING analysts wrote in a commentary. A constructive solution could prompt the market to gradually reduce the risk premium of up to ten dollars per barrel. On Thursday, North Sea Brent crude and US WTI oil each fell by 1.8 percent to USD 69.59 and USD 64.21 per barrel, respectively, after US crude inventories rose at their fastest pace in three years.
(Report by: Daniela Pegna. Edited by Olaf Brenner. For questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
