Analysts name four stocks in Europe to watch after Nvidia report

Analysts Bernstein and VanEck have identified a number of European companies, quotes of which are most sensitive to the financial performance of Nvidia. This was reported by CNBC. The main beneficiary of the AI boom will publish a report after the close of trading in New York on February 25, and the European stock market the next day will react to this data before Wall Street opens.

Dutch equipment manufacturer ASML Holding plays a critical role in Nvidia's AI chip supply chain. The company is the only manufacturer of hard ultraviolet (EUV) lithography machines, without which advanced chip printing is impossible. "If Nvidia's outlook turns out to be very strong, further expansion of chip capacity will be required, which will require more equipment from ASML," Bernstein managing director David Dye told CNBC.

BE Semiconductor Industries (BESI) of the Netherlands produces machines for chip assembly and packaging. They are purchased by factories that make chips for Nvidia, including TSMC. If Nvidia reports strong demand for advanced AI chips, it will support investment in BESI's technology, emphasized VanEck product manager Camille Papaleo. Conversely, signs that capacity shortages are easing or order growth is slowing could trigger sharp spikes in BESI's stock price due to its heavy reliance on the AI boom, Papaleo added.

German semiconductor manufacturer Infineon Technologies, one of the largest players on the European market, specializes in power electronics. Its products are directly related to data center infrastructure: "Infineon supplies chips that go directly into Nvidia's AI servers, so more demand for Nvidia products means more direct demand for Infineon products," stated Dai from Bernstein.

Switzerland's STMicroelectronics is also among the largest European chip makers and developers. According to VanEck's Papaleo, because of its scale, this company is sensitive to general changes in sentiment in the semiconductor sector. A successful report from Nvidia will be a signal to investors that the supply crisis has passed, demand in end markets is growing, which means that STMicroelectronics shares will also get a stimulus for growth, she said.

After a three-year stock market rally, Nvidia's stock is up only 2% since the start of 2026. Nvidia itself has provoked doubts about the sustainability of technology spending by delaying its $100 billion investment in OpenAI and rumored plans to reduce that amount to $30 billion. Nvidia's upcoming report is especially important because investors are seriously concerned about whether we are in a bubble, Reuters writes, citing Spear Invest Chief Investment Officer Ivana Delewska. According to her, "demonstrating that earnings are not slowing down will be very important."

LSEG's consensus forecast calls for Nvidia's earnings growth to slow to 62% for the quarter ended in January from 65.3% in the prior-year period. Wall Street also expects the company's revenue to increase more than 68% last fiscal quarter (to $66.16 billion) and another 64.4% year-over-year in the current quarter (to $72.46 billion). Although the company has exceeded sales forecasts for 13 consecutive quarters, the gap between expectations and reality is narrowing, according to Reuters.

The main constraint on Nvidia's growth remains supply chain bottlenecks, with the company battling rivals for TSMC's spare capacity to produce AI chips. "We think Nvidia will meet forecasts, but it's hard to envision it showing significant growth potential in light of TSMC's [limited] manufacturing capacity," wrote Seaport Research Partners' Jay Goldberg. That said, the memory chip shortage won't be a blow to Nvidia thanks to its ability to dictate prices and pre-contracted supply volumes, analysts surveyed by Reuters said.

The majority of analysts watching Nvidia's stock are advising them to buy (68 ratings of "Buy" and "Overweight"), MarketWatch data shows; five experts are advising to hold the company's shares ("Hold") and only one is advising to sell.

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