TLDR
- European markets started Thursday’s session with gains, breaking a three-day losing streak
- Oil prices declined more than 1.5%, with Brent crude sliding under $73 per barrel
- Micron Technology delivered fiscal Q3 revenue of $41.46 billion, significantly exceeding expectations
- European semiconductor stocks jumped, with ASM International climbing 5.9%
- Micron projected current-quarter revenue around $50 billion, crushing analyst forecasts
European stock markets began Thursday’s trading session with positive momentum, buoyed by two key catalysts: declining crude oil prices and impressive quarterly results from American semiconductor giant Micron Technology.
Brent crude contracts dropped over 1.5%, slipping beneath the $73 per barrel threshold. This decline followed advancements in diplomatic discussions between the United States and Iran, which helped diminish the geopolitical risk premium that had supported elevated oil prices recently.
The reduction in oil prices helped alleviate inflationary pressures throughout the eurozone. This development lessened expectations for additional aggressive monetary tightening from the European Central Bank following its 25-basis-point rate increase earlier this month.
Sectors particularly sensitive to interest rate movements, including technology and property, reacted favorably. These areas had been struggling under the weight of expectations for continued restrictive monetary policy.
The pan-European STOXX 600 index climbed 0.2%. Germany’s DAX advanced 0.3%, while Italy’s FTSE MIB also increased 0.3%. 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 the index.
Micron’s Exceptional Results Ignite Chip Stock Surge
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 same period last year and substantially exceeded analyst projections of $35.84 billion.
Adjusted earnings per share reached $25.11, surpassing the consensus estimate of $20.78. Micron’s shares soared over 18% during after-hours trading.
The company’s data centre division emerged as the primary growth driver. Revenue in this segment expanded more than sevenfold to reach $11.5 billion, propelled by robust demand for memory chips deployed in artificial intelligence infrastructure. Gross margin jumped to 84.9% compared to 39% in the prior-year period.
Micron provided guidance for the current quarter, projecting revenue of approximately $50 billion. This forecast represents nearly a 4.5-fold increase versus the year-ago period and significantly exceeds the consensus analyst estimate of $43.58 billion.
The semiconductor manufacturer announced it 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 Manufacturers Post Strong Gains
ASM International topped sector performance with a 5.9% advance. ASML increased 4.2%, BE Semiconductor Industries gained 3.8%, Infineon surged 5.6%, and STMicroelectronics rose 4.3%.
The broader STOXX Europe Technology index advanced 1.8%, positioning it 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, fueled by artificial intelligence-related demand, support a favorable near-term outlook for European semiconductor equipment manufacturers.
Despite Thursday’s positive momentum, European indices remain behind the historic rallies observed on Wall Street and throughout Asian markets. The region’s significant exposure to energy and legacy industrial sectors restricts its participation in the AI-powered gains propelling other global markets.
The decline in crude oil prices also pressured energy sector stocks, limiting the magnitude of broader index advances despite technology’s strong performance.
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