Technology stocks surged on Thursday after Nvidia released quarterly results that beat expectations. Investors seemed to overlook new worries about the company’s limited access to the Chinese market. The Stoxx Europe tech index rose 0.8%, with semiconductor company ASML gaining 2.4%. In the U.S., Nasdaq futures climbed 2%, while Nvidia’s shares jumped 6% in pre-market trading.
Nvidia, a leading maker of AI chips, reported a 69% increase in quarterly revenue year-on-year, reaching $44 billion. This beat analysts’ predictions. The company also said it plans to make up some lost sales in China by signing new contracts in the Middle East.
Despite strong results, Nvidia CEO Jensen Huang warned about fast-growing Chinese tech rivals. In an interview with Bloomberg, Huang said companies like Huawei are advancing quickly in artificial intelligence, calling them “quite formidable.”
He said, “The Chinese competitors have evolved. They are doubling, quadrupling capabilities every year.” Huang stressed that China remains a key center for AI research, even with U.S. export limits. “You cannot underestimate the importance of the China market,” he added.
In April, former President Donald Trump banned exports of AI chips to China, preventing Nvidia from selling its H20 chips to Chinese firms. Nvidia estimates these restrictions will cost about $8 billion in revenue in the second quarter.
Adding to investor optimism, the U.S. Court of International Trade recently struck down Trump’s wider tariffs on Chinese goods. While the White House has appealed, the ruling suggests possible relief from long-standing trade tariffs that have unsettled markets.
Tesla stock rose 2.6% after CEO Elon Musk confirmed he would leave his role in the Trump administration. Musk led the Department of Government Efficiency (Doge), known for cutting public spending sharply. His departure follows Tesla’s earnings decline and Musk’s unsuccessful attempt to influence a Supreme Court race despite backing a Republican candidate.
The mix of Nvidia’s strong earnings, easing trade tensions, and Musk stepping away from politics gave tech investors fresh confidence. This boost came despite ongoing global uncertainties and rising competition from China.