European equity markets opened approximately 1% higher as better-than-expected earnings from Nvidia eased investor concerns over an artificial intelligence valuation bubble. The STOXX 600, FTSE 100 and DAX each advanced, driven by strength in semiconductor and tech sectors that had previously been pressured by profit-taking.
Nvidia’s robust guidance and strong data-centre demand helped reassure investors that the AI theme remains intact, stabilising sentiment across components reliant on chipmakers and infrastructure providers. Analysts said the surprise upbeat tone tempered fears of excessive speculative exposure in the tech space.
Despite lingering risks around macro-growth and valuations, the positive start to the trading day reflects renewed risk appetite and suggests market participants may view the AI rally as more sustainable than previously feared.
