European chipmakers ASML, STMicro fall following steep drop in Nvidia shares

Investing.com -- Shares in ASML Holding (AS:ASML ) and STMicroelectronics (EPA:STMPA ) were among the biggest losers on the pan-European Stoxx 600 on Wednesday, following a sharp slump in shares in US peer Nvidia (NASDAQ:NVDA ).

By 05:11 ET (09:11 GMT), Amsterdam-listed shares in ASML had shed more than 5%, weighed down in part by analysts at UBS downgrading their rating of the Dutch semiconductor group to "Neutral" from "Buy." Meanwhile, STMicro had dipped by over 2.5% in Paris trading.

Nvidia's share price fell by more than 9% on Tuesday, shedding around $279 billion in market value off the firm that has been the focal point of a recent boom in enthusiasm around the applications of AI.

Other chip stocks, including Advanced Micro Devices (NASDAQ:AMD ), Intel (NASDAQ:INTC ) and Broadcom (NASDAQ:AVGO ), also suffered major losses.

Sentiment was dampened by weaker-than-expected results from the Institute for Supply Management's monthly measure of US manufacturing activity, which stoked fears of a potential slowdown in the world's largest economy.

The growth concerns drove the steepest selloff in a month on Wall Street overnight as US investors returned from their Labor Day holiday. The main European indices also weakened on Wednesday, mirroring sluggishness in Asian equities.

Source: Investing.com