European stocks gain as US tech turbulence shifts investor focus

European stocks have outperformed as investors reassess the AI sector after Nvidia chief executive Jensen Huang’s reported departure.

The pan-European STOXX 600 reached a record on Thursday and was on track for its biggest weekly gain since June.

Europe’s smaller technology sector may cushion the market from turbulence in AI-linked shares.

Technology makes up 8.8% of a European benchmark, compared with more than 35% of a US one.

Strong company earnings are adding support, with STOXX 600 firms expected to report quarterly profit growth of 25%, the strongest in four years.

Investors are shifting away from crowded AI trades amid concerns about high valuations and debt-funded spending.

But a broad Wall Street selloff could still pull global markets down, so Europe’s relative shelter is not guaranteed.