European semiconductor stocks recovered on Tuesday after a bruising multi-session decline triggered by Broadcom’s disappointing quarterly report from last week. 

Shares in Infineon Technologies climbed more than 2%, and BE Semiconductor added 1.9% by 07:49 GMT. Meanwhile, ASML, ASM International, and STMicroelectronics rose between 0.5% and 1%. 

The slight rebound comes after days of losses in global semiconductor stocks. The selling began after Broadcom’s latest quarterly report suggested that demand for its custom AI chips had fallen short of elevated expectations. The company held its fiscal 2027 AI revenue target steady at $100 billion, disappointing investors who had anticipated an upgrade given the strong momentum in its custom chip business.

The report also hit U.S chip stocks hard, with the PHLX semiconductor index slumping 10.3% on Friday, its worst single-day drop since the pandemic-driven market turmoil of March 2020.

However, the U.S. technology and chip shares bounced back on Monday. The S&P 500 technology sector rose 1.5% to lead sector gainers, while the Philadelphia Semiconductor Index jumped 5.6%, partially recovering from a selloff that had wiped out roughly $1 trillion in market value for U.S.-listed chipmakers.

Intel shares surged 11.2% after the Information reported that Google had placed an order to manufacture more than three million tensor processing units in 2028.

Sentiment also got a boost from the Middle East, where Iran and Israel said they had halted attacks on each other following an appeal from U.S. President Donald Trump, who called on both sides to immediately stop shooting.