Technology shares climbed on Thursday, buoyed by strong results from Nvidia, despite the AI chip company's boss issuing a warning about the rise of Chinese rivals. The Stoxx Europe tech index rose by 0.8% on Thursday following Nvidia's financial report, with the Dutch semiconductor equipment maker ASML rallying by 2.4%. In the US, futures for the tech-focused Nasdaq climbed 2%, and shares in Nvidia itself jumped 6% in pre-market trading. The boost to tech and artificial intelligence stocks came hours after Nvidia beat Wall Street forecasts, with quarterly revenues jumping 69% to 44bn ( 32.6bn). The company also said it expected deals in the Middle East to start to fill a gap left by the loss of Chinese business.

US stocks have fallen further after Donald Trump imposed a new trade restriction on the chip designer Nvidia, rattling investors and triggering a sell-off across the semiconductor industry. The S&P 500 index dropped by about 1.3% in early trading, with the tech-heavy Nasdaq index down 2.1%. The Dow Jones fell 0.6%. Nvidia, the Californian company at the heart of the revolution in artificial intelligence technology, lost billions of dollars from its market value at the opening bell, with its shares down about 6%. The sell-off, which has spread to semiconductor makers in Asia and Europe, comes after Nvidia said the Trump administration had restricted the sale of its H20 chip in China by means of new licence requirements.