By Joe Stonor

A global rout of technology stocks spilled over into Europe in early trading, as investors balked at sky-high valuations in stocks linked to artificial-intelligence.

ASML--Europe's most valuable company--lost around $38 billion in market value in the first two hours of trading, sliding 5.2%. The maker of equipment crucial for the manufacturing of semiconductors tumbled after shares in key customers SK Hynix and Samsung Electronics fell sharply in Asia trade.

Dutch peers BE Semiconductor and ASM International fell on the same forces, down 5% and 6%, respectively. The falls weighed on the Dutch AEX, which was down close to 2%.

Elsewhere in Europe, makers of analog semiconductors--those that process power rather than information--were caught up in the selloff. Cross-listed STMicroelectronics dropped 7.5%, while Infineon Technologies fell 5.8%.

Faltering technology stocks are weighing on headline index figures, as the Europe-wide Stoxx 600 slid 1.1% in early trade.

U.S. AI-related names are also facing a brutal day of selling. Chip makers Intel and Marvell Technology tumbled around 8% premarket, while Micron Technology lost over 9% premarket ahead of its earnings release after market close Wednesday. Futures for the Nasdaq 100 dropped 2.8%.

"We have seen tech stocks go vertical and become very overbought. What we're doing now is getting rid of that overbought situation," Panmure Liberum investment strategist Joachim Klement said.

Though bargain hunters might swoop in to take advantage of lower prices, the AI stock market boom could be nearing a painful end, Klement said. SpaceX's latest borrowing plans aren't helping.

"I think a lot of the selloff is also triggered by SpaceX. A lot of retail investors have taken profits, and this news about additional debt piles onto concerns around fundraising across hyperscalers," the investment strategist said.

Elon Musk's rocket and satellite company is expected to issue more than $20 billion in bonds, The Wall Street Journal reported, after raising over $85 billion in equity markets after publicly listing earlier this month.

SpaceX shares were down 4.5% premarket to $147.58, extending a 16% fall in the last session though the stock continues to trade above its $135.00 listing price.

Market participants are wary of the concentration of bets in AI-related stocks and are rethinking their investments as a result, UBS European equity strategy head Gerry Fowler wrote in a note to clients.

"Investors increasingly recognize the crowding and 'same bus' dynamic, and many are beginning to question how much upside remains versus risk," Fowler said.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

June 23, 2026 05:24 ET (09:24 GMT)

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