Key Highlights
- European markets gained Thursday, marking their first positive open of the week
- Brent crude declined more than 1.5%, falling beneath $73 per barrel and reducing inflation pressures
- Micron Technology delivered quarterly revenue of $41.46 billion, significantly exceeding expectations
- European semiconductor stocks rallied sharply, with ASM International jumping 5.9%
- Micron projected next quarter revenue around $50 billion, substantially above Wall Street forecasts
European stock markets kicked off Thursday’s session with solid gains, supported by a combination of declining energy prices and outstanding financial results from American semiconductor giant Micron Technology.
Brent crude futures dropped over 1.5%, sliding beneath the $73 per barrel threshold. The decline followed advancement in US-Iran diplomatic negotiations, which stripped away the geopolitical risk premium that had elevated oil prices in preceding weeks.
The retreat in oil prices alleviated inflation worries throughout the eurozone. This development diminished expectations that the European Central Bank would need to implement additional rate increases following its 25-basis-point adjustment earlier this month.
Interest rate-sensitive industries including technology and property sectors responded favourably. These areas had faced headwinds from expectations of continued monetary tightening.
The pan-European STOXX 600 advanced 0.2%. Germany’s DAX climbed 0.3% while Italy’s FTSE MIB similarly rose 0.3%. France’s CAC 40 traded unchanged. London’s FTSE 100 moved against the broader trend, declining 0.3% as energy majors BP and Shell weighed on the index.
European Chip Stocks Surge on Micron’s Outstanding Performance
Micron unveiled fiscal third-quarter revenue totalling $41.46 billion. This figure represented more than a quadrupling from the $9.3 billion recorded in the corresponding period last year and substantially exceeded analyst projections of $35.84 billion.
Adjusted earnings per share reached $25.11, surpassing the Street estimate of $20.78. Micron’s shares jumped over 18% during extended trading hours.
The firm’s data centre division proved particularly impressive. Revenue in that segment increased more than seven-fold to $11.5 billion, powered by robust demand for memory components utilized in artificial intelligence systems. Gross margin expanded to 84.9% compared with 39% in the prior-year period.
Micron additionally provided guidance for the current quarter indicating revenue approaching $50 billion. This projection is nearly four and a half times the year-ago level and comfortably above the $43.58 billion consensus forecast.
The company disclosed it had finalized 16 long-term supply contracts with data centre clients and automotive manufacturers, representing anticipated commitments totalling $22 billion across three to five years.
Semiconductor Stocks Dominate European Market Gains
ASM International topped the sector’s performance with a 5.9% advance. ASML climbed 4.2%, BE Semiconductor Industries appreciated 3.8%, Infineon surged 5.6%, and STMicroelectronics rose 4.3%.
The broader STOXX Europe Technology index jumped 1.8%, establishing itself among the strongest performers within the STOXX 600.
Goldman Sachs analyst Alexander Duval noted that constrained supply conditions in both DRAM and NAND memory markets, fuelled by artificial intelligence demand, establish a favourable near-term environment for European semiconductor equipment manufacturers.
Notwithstanding Thursday’s positive performance, European benchmarks remain behind the record-setting advances observed on Wall Street and across Asian markets. The region’s substantial allocation to energy and legacy industrial sectors restricts its participation in the AI-powered momentum driving other global markets.
The pullback in crude oil prices also pressured energy-related equities, limiting overall index appreciation even as technology stocks advanced strongly.
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