European stocks lifted by Nvidia’s blowout results

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European shares tracked Asian shares higher on Thursday, as chipmaker Nvidia’s blowout revenue stoked investor enthusiasm for artificial intelligence stocks.

Europe’s Stoxx Europe 600 opened 0.9 percent higher, boosted by a strong technology sector, France’s Cac 40 rose 0.8 percent and Germany’s Dax rose 1 percent.

The Stoxx Europe 600 technology index rose 1.8% as gains in technology shares reverberated through global stock markets, just a day after U.S. chip company Nvidia reported that its latest quarterly revenue more than doubled, exceeding even Wall Street’s overvaluation.

Optimism about artificial intelligence has largely fueled gains in big U.S. tech stocks since the start of the year, helping Nvidia shares triple and making it the first chip ever to hit a $1 trillion market cap company. The company rose 6.6% in after-hours trading.

“This much-anticipated report is about more than just Nvidia earnings,” said James Baxter, founder of Tideway Wealth. In-depth knowledge of broad software and computing industry impact.”

Dutch chipmaker ASML rose 1.6%, Switzerland’s STMicroelectronics rose 1.3% and South Korea’s SK Hynix rose 4.2% as Nvidia’s results confirmed traders’ demand for chips that generate artificial intelligence systems Growing bets.

In Asia, Hong Kong’s Hang Seng was up 2%, China’s CSI 300 was up 0.7%, Japan’s Topix was up 0.4% and South Korea’s Kospi was up 1.3%.

Futures contracts tracking the Nasdaq 100 index of Wall Street technology stocks rose 1.2%, while futures contracts tracking the benchmark S&P 500 rose 0.6% ahead of the New York open.

Stocks had edged higher before Nvidia’s results boosted sentiment, as Wednesday’s U.S. and European PMI data raised the possibility that major central banks will stop raising interest rates soon.

Mohit Kumar, chief European financial economist at Jefferies, noted that the PMI survey could signal an imminent deterioration in hard data, which has been particularly strong in the U.S. so far.

“The PMI data supports our view that we should see the macro picture (and the labor data) start to falter late in the third quarter, early in the fourth quarter,” he said.

The two-year Bund yield, which is sensitive to rate expectations, fell 0.03 percentage point to 2.94%, while the regional benchmark 10-year Bund yield fell 0.05 percentage point to 2.47%. Bond yields fall as prices rise.

Investors will focus on the annual economic policy meeting in Jackson Hole, Wyoming, where Federal Reserve Chairman Jay Powell is expected to reveal the central bank’s future interest rate plans on Friday.