Chip stocks plunge as Air France-KLM rises more than 12%

Shares in European chipmakers plunged on Thursday, with Amsterdam-listed ASML, ASMI and Besi each losing as much as 7 per cent, as investors worried that a Democratic victory in the US Congress could affect the artificial-intelligence boom. The sector had its worst trading day since the March 2020 coronavirus crash, according to ANP and Bloomberg.

Air France-KLM shares moved sharply in the opposite direction, gaining more than 12 per cent. Investors welcomed KLM’s plans to cut costs, which include reducing its workforce by about 5,000 — nearly 15 per cent of staff — as well as outsourcing work, dropping some Airbus aircraft and seeking limits on wage rises through talks with unions.

The rise follows a separate 10 per cent jump in Air France-KLM shares after the group reported higher quarterly profits and KLM announced the job-cut plan.