European semiconductor stocks moved higher on Tuesday, recovering part of the losses suffered during a broad sector sell-off that followed Broadcom’s (NASDAQ:AVGO) latest quarterly earnings release.
By 07:49 GMT, Infineon Technologies (TG:IFX) had gained more than 2%, while BE Semiconductor (EU:BESI) advanced 1.9%. Other major chip-related names also traded higher, with ASML (EU:ASML), ASM International (EU:ASM) and STMicroelectronics (BIT:STMMI) (EU:STMPA) posting gains of between 0.5% and 1%.
The recovery follows several sessions of heavy pressure across global semiconductor markets. Investor sentiment deteriorated after Broadcom’s quarterly update failed to meet elevated expectations surrounding demand for its custom artificial intelligence chips. Although the company reaffirmed its fiscal 2027 AI revenue target of $100 billion, investors had been hoping for an upward revision given the strong growth trends in the business.
The disappointment reverberated across the sector, sending U.S. semiconductor shares sharply lower. On Friday, the PHLX Semiconductor Index plunged 10.3%, marking its steepest one-day decline since the market turbulence triggered by the COVID-19 pandemic in March 2020.
Technology stocks recovered some ground on Monday, however. The S&P 500 technology sector rose 1.5%, leading gains among major industry groups, while the Philadelphia Semiconductor Index surged 5.6%. The rebound partially reversed a sell-off that had erased approximately $1 trillion in market capitalisation from U.S.-listed chipmakers.
Among individual stocks, Intel (NYSE:INTC) jumped 11.2% after The Information reported that Google had placed an order for the production of more than three million tensor processing units scheduled for delivery in 2028.
Market sentiment also received support from geopolitical developments in the Middle East. Iran and Israel announced a halt to attacks against one another following an appeal from U.S. President Donald Trump, who urged both countries to immediately cease hostilities.
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