Semiconductor Stocks in Europe on Downward Trend After Signs of Weakness from USA and South Korea

A worrisome wind is blowing through the European semiconductor industry: The forecasts by American chipmaker AMD and South Korean electronics giant Samsung Electronics are putting pressure on the share prices of European industry heavyweights. Companies such as Infineon, Elmos Semiconductor, and the equipment suppliers specialized in the chip industry, Aixtron and ASML, had to accept losses of up to 1.5 percent on the Tradegate trading platform—a moderate, but still noticeable reaction to global developments. The disappointment primarily stems from the latest announcements: AMD significantly missed market expectations with its revenue forecast for the current quarter and saw a considerable 6.5 percent decline in after-hours trading in the USA. Samsung Electronics—a heavyweight in the sector—also faced a price correction of 2.2 percent in its domestic market in South Korea, despite an apparent recovery in demand for memory chips. Market observer Jochen Stanzl from CMC Markets expressed his surprise at the disappointing outlooks of leading main processor manufacturers Intel and AMD for the year 2024. While the industry is experiencing a boom in the field of Artificial Intelligence, this boom, according to Stanzl's analysis, appears to benefit only the hardware conglomerate Nvidia significantly. Other manufacturers, including supplier TSMC, have so far not been able to profit to the same extent in this particular market segment. The forecasts also have an impact on Siltronic: The share price of the silicon wafer producer fell by about one percent on Tradegate. The company, whose products are used in the manufacture of electronic chips, is on the verge of announcing its financial figures for the year 2023.