Shares of HUA HONG SEMI (01347) plummeted 6.07% during intraday trading on Friday, leading losses in the semiconductor sector.
The sharp decline followed a broader sell-off in global chip stocks, triggered by U.S. chipmaker Broadcom's latest quarterly outlook. Broadcom failed to raise its AI chip sales guidance for 2027, disappointing market expectations that had previously fueled rallies in the sector. This news caused Broadcom's own stock to plunge over 12% in a single session, sparking a rout across the technology and semiconductor space.
The negative sentiment from the U.S. market flowed into Asian trading, leading to a broad decline in major Chinese and Hong Kong semiconductor stocks. HUA HONG SEMI was among the hardest hit as investors reacted to the dimmer outlook for AI-related chip demand highlighted by Broadcom's guidance.
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