- Luxury stocks leads declines after Richemont's results
- AI outlook concerns persist after Nvidia Huang's resignation
- UK's Wise Group tops STOXX index after H1 results
- Eurozone Q3 GDP data due at 10 a.m. GMT
- Goldman Sachs raises 12-month target for STOXX 600
Nov 13 (Reuters) - European shares slipped on Friday, retreating from record highs hit in the previous session, while uncertainty over the outlook for the AI trade rippled through global markets following Jensen Huang's abrupt resignation as Nvidia's CEO.
Investors were worried about what Huang's resignation following revelations of extramarital affairs would mean for future AI development that has underpinned much of the global economy, given that he was a key personality in a web of deals that financed the flourishing trade.
The STOXX 600 was down 0.2% at 662.51 points at 0858 GMT, with the tech sector down 0.9%.
Chip stocks such as Infineon and Aixtron were down about 2% each, while AI equipment makers such as Schneider Electric and Legrand were marginally lower.
"There is a little bit of a knock-on effect as tech sector has come under pressure given the fallout from Nvidia in addition to concerns that were already lingering over the AI trade," said Fiona Cincotta, an independent market analyst in London said.
Despite Friday's losses, analysts say Europe's smaller exposure to AI-linked stocks makes it relatively less vulnerable to AI volatility.
The STOXX 600 earlier this week breached record-high levels for the first time since August and is up over 2% for the week, its strongest gain since June. In comparison, its US peer, the S&P 500, is more than 3% away from all-time highs.
Goldman Sachs raised its 12-month target for the STOXX 600 to 700 points from 695. Robust earnings this quarter have also supported European equities.
Wise Group gained 4.7% to top the benchmark index after the money transfer company reported a 23% net revenue rise in the first half of its fiscal year.
In contrast, Richemont fell 6.5% and weighed on the personal and household goods sector after the Cartier owner reported weaker-than-expected sales in its jewellery unit during the second quarter.
The gloom also spilled over to the broader luxury sector, which slid 2%, with Kering down 1.3% and LVMH off 0.2%.
Italian insurer Generali lost 1.5% after its operating profit rose 8.5% to €6.45 billion ($7.13 billion) in the first nine months of the year but missed consensus by 1%.
A slight tick up in Brent crude prices also fuelled caution as tanker attacks in the Strait of Hormuz continued, dampening the chances for an imminent end to the US-Iran conflict.
Later in the day, the focus will shift to euro zone third-quarter gross domestic product data, due at 1000 GMT.
($1 = 0.9042 euros)
Reporting by Anjana J Nair and Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala and Jochelle Mendonca
Source: Reuters