BUZZ-U.S. chip stocks extend selloff on earnings, AI jitters

Reuters07-25

** U.S. chip stocks hit by more selling in premarket trading after disappointing earnings from semiconductor companies across the globe and on jitters around AI frenzy

** Shares of Micron Tech down 3.6%, Nvidia off 1.3%; AMD , Broadcom , Arm Holdings and Intel down 0.8%-2.8%

** The Philadelphia SE Semiconductor index tumbled 5.4% on Wed, closing 13.5% below its all-time closing high and in correction territory, as investors sold AI-linked stocks on concerns about lofty valuation

** Asian markets sold off sharply on Thurs, with South Korea's SK Hynix falling 8.9% despite posting its highest quarterly profit since 2018

** In Japan, Renesas Electronics slumps 13.6% after the chipmaker reports 29% decline in net profit for six months to June

** Franco-Italian chipmaker STMicroelectronics drops almost 14% after it cut FY revenue and margins guidance

(Reporting by Sruthi Shankar in Bengaluru)

((sruthi.shankar@thomsonreuters.com;))

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