FRANKFURT/NEW YORK (dpa-AFX) – The previous day’s price slide in New York trading was having an impact on the European technology sector on Friday. After the US leading index NASDAQ 100, which is dominated by tech stocks, turned deep into the red on Thursday together with the chip giant NVIDIA, the European industry index also fell by 2.6 percent. Standing below 800 points, the Stoxx Europe 600 Technology fell to its lowest level since mid-September on Friday. In the annual balance sheet it sank into the red.
The initial recovery due to strong Nvidia figures had turned out to be a flash in the pan the day before in New York, with the AI chip giant’s shares, which had initially recovered by five percent, ultimately losing more than three percent. There was no sign of a recovery at Nvidia in pre-market trading on Friday and so the prices of European chip stocks also fell. Infineon lost 3.1 percent in the DAX and STMicroelectronics in Paris lost 1.7 percent.
The shares of German chip industry suppliers such as Aixtron (AIXTRON SE) and Suss Microtec (SUSS MicroTec SE (ex SUSS MicroTec)), which were among the weakest stocks in the MDAX and SDAX with discounts of up to ten percent, came under even greater pressure on Friday. In addition, the wafer manufacturer Siltronic saw a relatively significant decline of four percent.
“The discussions about the current valuations of the big technology companies are likely to continue in the coming week,” believes market observer Jürgen Molnar from the broker Robomarkets. This has already ensured that Nvidia is 15 percent and the Nasdaq 100 index is more than eight percent away from their respective records. After impressive figures and an extremely optimistic outlook from Nvidia, Molnar says there is renewed fear that it could take a long time for companies’ investments in artificial intelligence to ultimately pay off.
Infineon has recently been increasingly perceived as a future beneficiary of the AI movement, as last week the chip manufacturer emphasized the growth impetus provided by AI data centers. They have already fallen by 16 percent from the high they had reached since July./tih/niw/stk
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