Business

AI chip giant Nvidia leapfrogs Microsoft and Apple as most valuable listed company

European shares continue rally from the slump that hit after Macron called a snap election in France

London’s FTSE 100 closed 0.6 per cent higher, with investors optimistic ahead of key domestic inflation data and the Bank of England’s policy decision this week. Photograph: Hollie Adams/Bloomberg

Joe Brennan
Tue Jun 18 2024 - 18:00

Nvidia has leapfrogged Microsoft and Apple to become the most valuable company in the world, following months of explosive share price growth driven by demand for its chips and an investor frenzy over artificial intelligence.

The company’s shares climbed 3.2 per cent to $135.18 on Tuesday, bringing its market capitalisation to $3.332 trillion and surpassing the two tech giants that have long jostled for pole position on US stock markets.

Meanwhile, European shares continued to rally from a sell-off last week after French president Emmanuel Macron called a snap election after his ruling centrist party was trounced in the European Parliament elections. The pan-European Stoxx 600 index closed nearly 0.7 per cent up, with utilities leading sectoral gains, up 1.5 per cent.

“Many investors out there [are] now saying that the sell-off we saw last week in French equities has been overdone and the fact that the political uncertainties are not necessarily going to impact the economic outlook of the country,” said Ipek Ozkardeskaya, a senior market analyst at Swissquote Bank.

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Dublin

The Iseq All-Share index rose 0.7 per cent to 9,498.60.

Banking stocks were in focus as it was confirmed that euro zone inflation ticked up to 2.6 per cent in May from 2.4 per cent a month earlier, which served to bolster expectations that the European Central Bank (ECB) will move slower to cut rates further. Heightened interest rates underpin bank incomes.

AIB rose 2.3 per cent to €5.01, while Bank of Ireland added 1.4 per cent to €10.15 and PTSB gained 1.5 per cent to €1.38.

Dalata Hotel Group rose 3.4 per cent to €4.14 with sentient towards the sector boosted as Whitbread, the London-listed Premier Inn owner reiterated its full-year forecast even after posting a 2 per cent drop in revenue per available room in the 13-week period to the end of May. Datalex has a sizeable UK operation and plans to have 5,000 beds there by the end of this year – up almost 30 per cent on 2022.

Travel-related stocks were mixed as investors monitor pilot industrial unrest at Aer Lingus. Irish Continental Group (ICG) advanced 1.9 per cent to €5.52, while Ryanair dipped 0.1 per cent to €16.79.

London

London’s FTSE 100 closed 0.6 per cent higher, with investors optimistic ahead of key domestic inflation data and the Bank of England’s policy decision this week.

Hargreaves Lansdown rose 5.3 per cent after the investment platform said it was set to agree to a £5.41 billion (€6.41bn) takeover by a CVC-led consortium.

Ashtead Group dropped 2 per cent after the equipment rental firm said it had no immediate plans for a US listing and forecast a slower revenue growth for fiscal 2025.

Europe

Most sectors traded higher, with lenders in the region advancing 1.2 per cent, extending their recovery from an 8 per cent drop last week.

Meanwhile, the recovery in German investor morale tapered off in June, the ZEW economic research institute said, reporting a modest rise in its economic sentiment index that fell short of forecasts.

Schneider Electric gained around 2 per cent, after Jefferies upgraded the French electric equipment and automation systems maker’s stock to a buy.

Novonesis advanced 5.8 per cent, after the Danish biotechnology group raised its full-year outlook, expecting growing demand for its biosolutions.

Carrefour dropped 4.2 per cent after the French finance ministry asked a court to fine the retailer over contracts with franchisee stores that it says were unbalanced in its favour. Carrefour contested the ministry’s grievances.

New York

Nvidia aside, Wall Street shares were generally higher in early afternoon trading following softer-than-expected US retail sales numbers, with focus on commentary from a slew of Federal Reserve officials later in the day.

Data showed US retail sales rose 0.1 per cent in May, versus the 0.3 per cent increase expected by economists.

Markets slightly increased bets on two interest rate cuts from the Fed this year following

Chip stocks in general continued their recent rally, boosting the Philadelphia SE Semiconductor index to a record high. Qualcomm, US-listed shares of Taiwan Semiconductor Manufacturing Co, Arm Holdings and Micron were up higher.

Homebuilder Lennar fell after forecasting lower-than-expected third-quarter home deliveries.

Educational technology company Chegg jumped after announcing job cuts as part of a restructuring plan. – Additional reporting, Reuters.

Joe Brennan

Joe Brennan

Joe Brennan is Markets Correspondent of The Irish Times

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