European tech runs with optimism Nvidia CEO on AI and Trump backtracking on tariffs

 (Il Sole 24 Ore Radiocor) - European technology stocks were on the defensive in Europe, following the performance of their Asian counterparts (Samsung Electronics +3.6%; Nvidia's supplier Disco, +17%). The backward march by US President Donald Trump on the imposition of new tariffsand the relief of tensions over Greenland with a possible NATO agreement under consideration has led to a return of investors' risk appetite.

"Statements made in Davos by politicians and businessmen are influencing the markets. As a result, defence-related stocks are falling and chip companies are rising," explain Intermonte analysts. On the other hand, the sector's stocks are benefiting from the positive comments ofNvidia CEO Jensen Huang, who, speaking at the World Economic Forum in Davos, described AI as the "engine of the largest infrastructure expansion in the history of mankind", since, in his view, multibillion-dollar investments in energy, chips, cloud infrastructure, models and applications will be required to build a global artificial intelligence infrastructure.

The number one of the American chip giant, considered a 'thermometer' of industry trends, said he is convinced that an AI-related tech bubble is not in sight, on the contrary, AI will help create jobs. "The idea of an AI bubble comes because the investments are huge, and the investments are huge because we have to build the infrastructure needed for all levels of AI. I think the opportunity is really extraordinary and everyone should participate," he said.

Thus, in Europe all technology stocks, and especially chip stocks, travelled into clearly positive territory. In Frankfurt, Infineon Technologies , while in Amsterdam, Asml is soaring. Also up nicely was Stmicroelectronics. St, by the way, next week (29 January) is called for the accounts test, with the publication of the results for the fourth quarter and full year 2025. The spotlight will mainly be on revenue performance (at the end of the third quarter, the company forecast revenues of $3.28 billion for the final period of the year, up from the third quarter, and $11.75 billion for the full year 2025, with an improvement in the second half compared to the first, but down from 2024). The focus will also be on investments, particularly those on Italy, with clarifications expected on the future of plants and workforce.