European Chipmakers Slide Again as Broadcom Fears Persist

Key Moments

European Chip Stocks Extend Losses

European-listed semiconductor stocks retreated for a third straight session on Monday, as pressure from Broadcom’s latest results persisted across global chip markets.

Shares of ASML, ASM International, BE Semiconductor, ams-OSRAM, and Siltronic were down between 1% and 3%, compounding the sharper declines logged in the previous week.

Broadcom AI Outlook Dampens Sentiment

The continued selloff followed Broadcom’s recent quarterly update, which showed that demand for its custom AI chips failed to meet very high expectations. In addition, the company kept its fiscal 2027 AI revenue objective unchanged at $100 billion, rather than increasing the target, which frustrated investors who had been looking for a higher figure in light of strong momentum in its custom chip segment.

Global Semiconductor Benchmarks Under Pressure

The reaction to Broadcom’s update weighed heavily on chip stocks around the world. The PHLX semiconductor index dropped 10.3% on Friday, marking its steepest one-day fall since the market volatility tied to the pandemic in March 2020.

Major U.S. Chipmakers See Sharp Moves

Several large U.S. semiconductor names recorded notable single-day losses. Nvidia declined by roughly 6%, erasing more than $300 billion in market capitalization. Micron Technology slid 13%, reducing its market value by about $150 billion. Marvell Technology lost 17%, and AMD fell nearly 11%.