(Reuters) – European semiconductor stocks fell on Tuesday as several competitors in Asia and the Americas warned of an upcoming drop in profits due to weak economic conditions.
Around 10:38 GMT, STMicroelectronics fell 2.29%, Infineon 2.15% and BE Semiconductor Industries 0.89%, among the worst performers in the STOXX 600 technology sub-index.
Samsung Electronics said on Tuesday it expected a 35% drop in fourth-quarter operating profit, well below analysts’ expectations, due to weak consumer demand.
For its part, the American group Microchip Tech reduced its third-quarter revenue forecast on Monday, citing lower shipping levels and a weak economy.
“Sentiment is negative. But keep in mind that the semiconductor sector experienced a strong inversion yesterday in the United States (SOX index), going green after a particularly weak start to the year,” observes an analyst .
(Written by Augustin Turpin, with the contribution of Tristan Veyet, edited by Blandine Hénault)
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