In 2024, AI stocks remain crucial as generative AI and machine learning continue to be key drivers of investor interest. Despite market fluctuations, AI stocks have shown resilience, even in these uncertain times.
While the idea of betting on a strong enterprise in the hopes that it will rise even higher is a valid one, arguably most investors prefer the opposite concept: finding undervalued stocks – especially those that Wall Street may be ignoring – that have a chance of shocking everyone. It's a riskier approach, to be sure.
The European tech sector now contains some good buying opportunities after the 'correction' in recent days, says Deutsche Bank, based on more attractive valuations and an expectation of improved earnings in the second half of the year. Taking in the sell-off on Tuesday, the Euro STOXX 600 Tech subsector is down 14% since the beginning of July, underperforming the broader STOXX 600 by 9% during the same period, which accounts for over a quarter of the downturn in the broader European equity market, multi-asset strategists at the bank said.
The recent meltdown is well deserved indeed, thanks to the market's over-exuberance surrounding generative AI/ high-growth stocks since the start of the year. With ASML now brought back to earth and finally nearing our fair value estimates, we believe that the risk/ reward is much more attractive now. This is on top of the excellent financial performance/ the jump in net bookings in FQ2'24, the stock's relatively cheap valuations, and promising semiconductor trends over the next few years.
Shares of Dutch semiconductor-gear maker ASML Holding (ASML) are soaring Wednesday on a report that the U.S. is on track to exclude chip-equipment makers in the Netherlands and elsewhere from its latest set of trade curbs aimed at reining in China's tech advance.
New rules from the Biden administration could allow ASML to continue exporting to China. Nearly half of its revenue comes from China.
The Dutch semiconductor giant ASML Holding NV (NASDAQ: ASML) was among the first companies to offer a significant stock market reaction to the reports that multiple crucial U.S. allies – the Netherlands, Japan, and South Korea being the three named by press time on July 31 – could be exempt from President Biden's restrictions on high-tech exports to China.
Shares of Dutch semiconductor-gear maker ASML Holding (ASML) are soaring in early Wednesday trading on a report that the U.S. is on track to exclude chip-equipment makers in the Netherlands and elsewhere from its latest set of trade curbs aimed at reining in China's tech advance.
Chip stocks rallied on Wednesday following a report the United States will exempt allies like Japan and the Netherlands from expected trade restrictions on advanced semiconductor technology, paring losses in the wake of a bruising tech stock rout the day before as investors question whether big tech's big bets on AI are paying off.
Shares in ASML , the largest maker of equipment used to manufacture computer chips, jumped on Wednesday following a Reuters report that implied it will be spared the brunt of new U.S.-China export restrictions under consideration.
Shares in chip equipment giant ASML Holding NV (NASDAQ:ASML) jumped 6% after reports emerged that Dutch companies should be exempt from US restrictions on Chinese exports. Tokyo Electron also surged 7.4% on the reports, with Japan one of the other countries exempted.
The Biden administration could make allies exempt from a crackdown on semiconductor exports to China, according to a report.