European chip stocks fall, tracking Asian selloff over AI investment worries

Investing.com -- European chip stocks opened lower Tuesday, tracking steep losses among Asian peers amid renewed concerns over the sustainability of the global AI investment boom.

Technoprobe, Siltronic and Soitec each fell more than 4%, while ASM International, BE Semiconductor, Aixtron, STMicroelectronics and Infineon all dropped more than 3% by 07:34 GMT.

The declines followed a sharp selloff in South Korean memory giants Samsung Electronics and SK Hynix, which closed 3% and 4.2% lower, respectively. The benchmark Kospi index fell 3.7% to 5,552.74, snapping two consecutive sessions of gains and marking its lowest closing level since April 7.

The rebound in Asian chip stocks over the past two sessions proved short-lived, as lingering concerns over credit and profitability tied to AI-related investment remained unresolved.

The Tuesday selloff comes after shares tied to AI rebounded on Wall Street on Monday, clawing back part of last week’s steep losses, while the rest of the market stayed shaky.

The S&P 500 climbed 0.4%, bouncing off its worst week since June, and the Nasdaq Composite jumped 1.1% on the strength of its heavy tech weighting. Most U.S. stocks outside the AI and technology sectors fell, however.

European markets fared worse, with major indexes sliding more than 1% after violent protests raised the prospect that France’s government may need to boost spending to quell voter anger. That, in turn, added pressure to bond markets, pushing yields higher around the world.

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