St takes a tumble as tech stocks plummet in the wake of Samsung’s slump
Investors are once again questioning the sustainability of valuations inflated by months of sector-wide rallies, and even the South Korean giant’s operating profit – which soared 19-fold in the second quarter – was not enough to reassure them
(Il Sole 24 Ore Radiocor) - The latest correction in tech shares, which began in Asia with a slump in Samsung in Seoul (-7 per cent after falling as much as 10 per cent) despite record results, is also affecting the European sector.
Investors are once again questioning the sustainability of valuations inflated by months of rallying, and even the South Korean giant’s operating profit – which soared 19-fold in the second quarter – was not enough to reassure them. Although enthusiasm for artificial intelligence remains undiminished following the results from companies in the sector, market participants are wondering whether the increase in investment, against a backdrop of growing competition and expanding production capacity, will generate sufficient earnings growth to sustain market valuations. On the Milan Stock Exchange, STMicroelectronics slipped to the bottom of the FTSE MIB index with an 8% fall, whilst outside the main index, Technoprobe lost ground (-6%). Elsewhere in Europe, Infineon Technologies took a heavy hit in Frankfurt (-7.65%), whilst in Amsterdam, ASML, BE Semiconductor and ASM International all lost ground.
