European AI-exposed stocks fall after hot US inflation fuels global selloff
SMH•European chip and other AI-exposed stocks fell sharply, tracking overnight losses in US and Asian markets. The STOXX tech index dropped 2.6% and was down 4.8% for the week, while several major chip stocks fell between 5% and 8%.
1. Technology stocks slide
The STOXX tech index fell 2.6%, leading sectoral losses on the STOXX 600 and heading for its worst day since July. The index was set for a second straight weekly loss, down 4.8% so far this week.
2. Chipmakers lead declines
ASML, STMicroelectronics, BESI, Infineon and ASMI fell between 5% and 8%. Siltronic, Soitec, Aixtron, Technoprobe and AT & S were down between 6% and 9.5%, while Schneider Electric, Nokia, Legrand, ABB and Prysmian slid between 3% and 5.1%.
3. Analyst sees valuation reset
Analyst Abed Jarad said the concern was not necessarily weakening AI demand, but whether heavily leveraged operators could finance aggressive expansion as borrowing costs rise. He described the decline as primarily a valuation reset rather than a fundamental deterioration.
