Key insights
- European and global semiconductor stocks are experiencing a significant selloff, triggered by Broadcom's weaker-than-expected quarterly results and a steady AI revenue target. This has led to substantial declines in major chip companies like Nvidia, Micron, and AMD, impacting investor sentiment and raising concerns about AI chip demand. The broad-based nature of the decline suggests potential headwinds for technology-related equities.
Investing.com -- European semiconductor stocks fell for a third straight session on Monday, as the fallout from Broadcom’s disappointing quarterly results continued to weigh on the sector globally.
Shares in ASML, ASM International, BE Semiconductor, ams-OSRAM, and Siltronic declined between 1% and 3%, adding to steeper losses sustained last week.
The selling began after Broadcom reported that demand for its custom AI chips had fallen short of elevated expectations. The company also held its fiscal 2027 AI revenue target steady at $100 billion rather than raising it, disappointing investors who had anticipated an upgrade given the strong momentum in its custom chip business.
The report hit global chip stocks hard. The PHLX semiconductor index slumped 10.3% on Friday, its worst single-day drop since the pandemic-driven market turmoil of March 2020.
Nvidia fell roughly 6%, shedding more than $300 billion in market value, while Micron Technology tumbled 13%, wiping out around $150 billion. Marvell Technology lost 17% and AMD fell nearly 11%.
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