Key Takeaways
- European markets started Thursday’s session with gains, marking the first positive opening this week
- Brent crude declined more than 1.5%, sliding under $73 per barrel and alleviating inflation pressures
- Micron Technology delivered quarterly revenue reaching $41.46 billion, substantially exceeding expectations
- Semiconductor stocks across Europe rallied sharply, with ASM International jumping 5.9%
- Micron forecasted approximately $50 billion in revenue for the coming quarter, surpassing analyst projections
European stock markets launched Thursday’s trading session with positive momentum, propelled by dual catalysts: declining crude oil prices and exceptional quarterly results from American semiconductor manufacturer Micron Technology.
Brent crude futures dropped more than 1.5%, settling beneath the $73 per barrel threshold. The decline followed advancement in US-Iran diplomatic negotiations, which helped dismantle the geopolitical risk premium that had elevated oil prices in recent trading sessions.
The retreat in oil prices provided relief from inflation worries throughout the eurozone. This development diminished expectations that the European Central Bank would pursue additional interest rate increases following its 25-basis-point adjustment earlier this month.
Interest rate-sensitive industries, particularly technology and property sectors, demonstrated positive reactions. These segments had faced headwinds from anticipation of more restrictive monetary conditions.
The pan-European STOXX 600 index advanced 0.2%. Germany’s DAX climbed 0.3%, while Italy’s FTSE MIB posted a 0.3% increase. France’s CAC 40 remained unchanged. London’s FTSE 100 moved against the regional trend, declining 0.3% as energy majors BP and Shell weighed on performance.
Exceptional Micron Results Trigger European Chip Stock Rally
Micron unveiled fiscal third-quarter revenue totaling $41.46 billion. This figure represented more than a fourfold increase from the $9.3 billion recorded in the comparable period last year and significantly exceeded the $35.84 billion analyst consensus.
Adjusted earnings per share reached $25.11, surpassing the $20.78 forecast. Micron’s shares soared over 18% during extended trading hours.
The company’s data centre segment emerged as the star performer. Revenue in this division surged more than sevenfold to $11.5 billion, fueled by robust demand for memory chips deployed in artificial intelligence infrastructure. Gross margin expanded dramatically to 84.9% from 39% in the prior-year period.
Micron also projected current-quarter revenue at approximately $50 billion. This guidance stands at nearly four and a half times the year-ago figure and substantially exceeds the $43.58 billion analyst consensus.
The company announced it had secured 16 long-term supply contracts with data centre operators and automotive manufacturers, representing anticipated commitments totaling $22 billion spanning three to five years.
European Chip Stocks Dominate Market Gains
ASM International topped the sector’s performance with a 5.9% surge. ASML advanced 4.2%, BE Semiconductor Industries gained 3.8%, Infineon climbed 5.6%, and STMicroelectronics rose 4.3%.
The broader STOXX Europe Technology index increased 1.8%, establishing itself among the strongest performers within the STOXX 600.
Goldman Sachs analyst Alexander Duval noted that supply constraints affecting both DRAM and NAND memory markets, propelled by artificial intelligence demand, establish a favorable near-term environment for European semiconductor equipment producers.
Despite Thursday’s positive performance, European benchmarks remain behind the record-setting advances observed on Wall Street and throughout Asian markets. The region’s substantial allocation to energy and legacy industrial sectors constrains its participation in the AI-powered momentum driving other global markets.
The decline in crude oil prices also pressured energy sector stocks, limiting broader index appreciation even as technology shares rallied.
