FRANKFURT/NEW YORK (dpa-AFX) — Investors' relief over Nvidia's robust earnings figures spread to European beneficiaries of the artificial intelligence movement on Thursday. Fears among investors of overhyped markets and the bursting of an "AI bubble" were eased by the chipmaker's strong quarterly growth.
In addition to a recent 1.6 percent rise in shares of German chipmaker Infineon, where investors are increasingly betting on AI opportunities, German stocks indirectly tied to the sector — particularly those related to energy demand and the construction of AI data centers — also saw gains. Siemens Energy surged by 4.1 percent to lead the DAX, nearing its record high, while Hochtief climbed 3.2 percent, making it the top performer in the MDAX.
"Market uncertainty was palpable, but the industry leader did not disappoint," wrote Activtrades analyst Frank Sohlleder. Nvidia has provided investors with the right response to their recent AI concerns, noted analyst Blayne Curtis of Jefferies. According to Deutsche Bank expert Jim Reid, "any fears of a bubble are being pushed back into the background."
"The strong numbers show that investments in AI infrastructure continue to rise — from hyperscalers, cloud providers, and governments. This does not point to an AI bubble, but rather to persistently high structural demand," added Maximilian Wienke of broker eToro, offering reassurance.
However, with recent concerns that the U.S. Federal Reserve may not cut interest rates again in December, the general market recovery faces another test this afternoon. Following a partial government shutdown in the United States in recent weeks, the September jobs report will be released, potentially impacting the markets.
Regarding Siemens Energy, the DAX leader, further momentum came during the day from news at the energy technology group's Capital Markets Day. One trader expects that the company's optimistic targets for 2028 will be confirmed. These targets were significantly raised again in mid-November with the quarterly report. As a result, the shares recently set a new record at EUR114.80. On Thursday, they traded as high as EUR114.55.
