European technology stocks, particularly semiconductor shares, sold off sharply on Tuesday. [2, 6] ASML, STMicroelectronics, Infineon, BE Semiconductor and ASM International fell amid a global rout in AI-related equities that also hit Asian and U.S. markets. [2, 4, 6]
Reports of technological advances by Chinese rival ChangXin Memory Technologies (CXMT) largely triggered the selloff. [3, 5, 7] The news raised investor concerns that intensifying competition from China could narrow the technology gap and weaken the future profitability and durability of the AI-driven market rally. [3, 5]