Tech stocks rebound in anticipation of Nvidia's accounts, St in Milan soars

 (Il Sole 24 Ore Radiocor) - European tech and semiconductor stocks rebounded, after the recent sell-off caused by renewed concerns over the sustainability of spending on data centres and artificial intelligence and pending Nvidia's accounts. Thus, in Milan Stmicroelectronics is the best of the main list, in Frankfurt Infineon leads the Dax, while in Amsterdam Asml, Asm and Be Semiconductor are highlighted. European stocks followed the performance of Chinese semiconductor stocks, which posted solid gains on the back of growing optimism about the country's artificial intelligence capabilities. Semiconductor Manufacturing International Corp, China's largest chipmaker by production capacity, gained 9.7% in Hong Kong trading, while Hua Hong Semiconductor jumped nearly 14%.

Investors are, however, awaiting the first quarter accounts of technology giant Nvidia, which, according to BofA Securities, is expected to post sales 2-4% above market expectations. In February, Nvidia had forecast consolidated revenues for the first quarter at USD 78 billion, a margin of 2%. The current FactSet consensus is $78.91 billion. The market's attention will be on any signs of continued momentum in the artificial intelligence sector.

Last week, Rbc Capital Markets also predicted that Nvidia will post another solid quarter thanks to strong demand for computing power, issuing optimistic revenue guidance for the current quarter. Wedbush, too, forecasts above-expected results and solid guidance for the Santa Clara-based giant, with the financial services firm emphasising the resilience of Nvidia's supply chain, despite numerous bottlenecks that threaten to hold back production and deployment for various participants in the Ai ecosystem.