U.S. chip stocks extend selloff on earnings, AI jitters

Renesas Electronics

25/07/2024 11:13

** U.S. chip stocks hit by more selling in premarket trading
after disappointing earnings from semiconductor companies across
the globe and on jitters around AI frenzy 
    ** Shares of Micron Tech  MU.O  down 3.6%, Nvidia  NVDA.O 
off 1.3%; AMD  AMD.O , Broadcom  AVGO.O , Arm Holdings  ARM.O 
and Intel  INTC.O  down 0.8%-2.8% 
    ** The Philadelphia SE Semiconductor index  .SOX  tumbled
5.4% on Wed, closing 13.5% below its all-time closing high and
in correction territory, as investors sold AI-linked stocks on
concerns about lofty valuation
    ** Asian markets sold off sharply on Thurs, with South
Korea's SK Hynix  000660.KS  falling 8.9% despite posting its
highest quarterly profit since 2018 
    ** In Japan, Renesas Electronics  6723.T  slumps 13.6% after
the chipmaker reports 29% decline in net profit for six months
to June
    ** Franco-Italian chipmaker STMicroelectronics  STMPA.PA 
drops almost 14% after it cut FY revenue and margins guidance

 (Reporting by Sruthi Shankar in Bengaluru)
 ((sruthi.shankar@thomsonreuters.com;))