United Microelectronics (UMC) shares experienced a significant decline of 5.10% during night session trading on Wednesday. The semiconductor foundry's stock faced selling pressure amid negative market sentiment.
The plunge followed the company's fourth-quarter earnings report, which showed earnings per share slightly below analyst estimates. Despite revenue exceeding expectations, the earnings miss prompted investor concerns. Additionally, UMC received downgrades from two major financial institutions during the trading day, with BNP Paribas lowering its rating to Underperform and JPMorgan downgrading the stock to Underweight.
These developments created a negative outlook for the stock among some market participants, contributing to the downward price movement. The company's forward guidance indicated a steady but cautious start to 2026, with flat wafer shipments and average selling prices expected for the first quarter.
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