The Paris Stock Exchange opened lower on Thursday, responding tepidly to the latest results from Nvidia, the world’s leading semiconductor firm. At around 9:10 AM GMT, the CAC 40 index declined by 0.52% to reach 7,159.57 points, continuing its downward slide from the previous day’s drop of 0.43%, touching its lowest point since July 7.
Markets felt let down by Nvidia’s results, which were released after Wall Street closed Wednesday. Although the AI chipmaker vastly exceeded quarterly profit expectations and affirmed robust demand for its semiconductors, its fourth-quarter sales forecasts fell short of analysts’ upper estimates.
Keita Yamaguchi of Monex Securities noted that despite strong initial numbers, the future earnings outlook seems less optimistic. Ipek Ozkardeskaya from Swissquote Bank added that recent announcements suggest the next few quarters may not be as positive as earlier ones.
Investors remain vigilant about ongoing developments in Ukraine, where for the first time, Kyiv utilized British Storm Shadow long-range missiles against Russian targets with permission from London. In response, Russia claimed to have shot down two of these missiles.
Indicators show a further clouding of business sentiment in France, with a decline of one point to 96, affecting almost all sectors except for industry, as reported by Insee on Thursday.
On a brighter note, French semiconductor specialist Soitec saw its shares soar 18.58% to €75.30 by 9 AM GMT on the broader SBF 120 index, following the release of its first-half results. The company reported a revenue of €338 million for the first half of fiscal year 2024/2025, a decline of 15% year-on-year. However, thanks to a revenue rebound in the second quarter, Soitec has maintained its forecasts for fiscal 2024/2025.
The article discusses the Paris Stock Exchange’s reactions to Nvidia’s quarterly results and their implications for the tech industry, specifically in semiconductors. Nvidia’s performance is crucial due to its role in the AI sector, and the disappointment from its sales forecasts is significant for investors. Additionally, the geopolitical situation in Ukraine adds uncertainty to the market, while domestic economic indicators reflect a decline in business sentiment. Soitec, another player in the semiconductor field, reported strong performance, contrasting with broader market trends, signaling resilience in certain sectors.
In summary, the Paris Stock Exchange is experiencing setbacks largely attributed to Nvidia’s quarterly results, which, while stellar in some aspects, did not meet sales forecasts. Ongoing geopolitical tensions in Ukraine add to market unease, and recent economic indicators point to a decline in French business sentiment. Nevertheless, Soitec shines amidst the dim landscape, signaling potential growth opportunities in the semiconductor sector.
