PARIS (Reuters) – Major technology stocks in Europe were suffering early Wednesday in the wake of Nvidia’s Wall Street rout the previous day, as investor enthusiasm for artificial intelligence (AI) faded.
On the Paris Stock Exchange, around 07:50 GMT, STMicroelectronics lost 2.02%, while in Frankfurt Infineon dropped 2.81%. Dutch semiconductor specialists ASML and ASM International fell by 4.84% and 3.23% respectively. The new technology index in Europe declined by 2.54%.
Nvidia shares listed in Frankfurt fell by more than 3% on Wednesday as, according to press reports, the American AI giant received a subpoena from the US Department of Justice (DoJ) over suspicions of a dominant position.
The day before, Nvidia had already plunged 9.5% during the session on Wall Street, wiping out $279 billion of market capitalization, the biggest drop in value in a single session for a US company, before closing down 7.74%. Investors’ doubts about Nvidia’s valuation have increased as the group reported last week its outlook for the coming months that the market considered insufficient in light of the high expectations placed on it.
Broader concerns about AI also weighed on shares of big players like Microsoft and Alphabet, Google’s parent company.
In Asia, the Japanese group Advantest, supplier of Nvidia, fell by 7.74% on Wednesday, while the Taiwanese TSMC lost 5.43% and the South Korean SK Hynix 8.2%.
(Written by Claude Chendjou, with contributions from Sneha Kumar and Sameer Manekar, edited by Kate Entringer)
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