The Biden administration could make allies exempt from a crackdown on semiconductor exports to China, according to a report.
Shares of Dutch firm ASML jumped as much as 10% on Wednesday after a Reuters report suggested the company could be exempt from expanded export restrictions on chipmaking gear to China. Reuters reported on Thursday that the U.S. is considering expanding the so-called foreign direct product rule.
Tokyo Electron and ASML shares surged on Wednesday following a report the U.S. is set to make the two technology giants exempt from new rules aimed at restricting China's access to high-tech chip making equipment.
AI stocks have been under extreme pressure since July 11th. On that date, the Federal Reserve signaled that rate cuts were coming sooner than expected and a ‘sector rotation' out of technology stocks began.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
None of AI technology would be possible without ASML's products. Management has told investors to focus on 2025's potential, not 2024's results.
European companies have mostly missed second-quarter revenue estimates due to weak Chinese demand, but cost-cutting meant that earnings remained stable. Ahead of a busy week where more than 150 of the UK and Europe's largest listed companies are set to report results, analysts at Panmure Liberum said sectors to have outperformed so far include health care and banks, while underperformers chemicals and automotive faced challenges and tech has been mixed.
US-imposed technology sanctions against China are a constant bugbear for the global semiconductor industry, not least for Dutch lithographic machinery monopolist ASML Holding NV (NASDAQ:ASML), the $350 billion firm selling $370 million shovels. ASML is virtually the only provider of extreme ultraviolet (EUV) lithography machines, which are essential to the production of silicon-based microchips, in the world.
Shares of the semiconductor equipment maker witnessed a sell-off after its latest quarterly results. The company might consider splitting its stock to make it accessible to a wider pool of investors.
ASML Holding (ASML) rides on portfolio strength and technological innovation in the recovering semiconductor industry amid macro headwinds.
ASML recently reported Q2 results, which were not bad, but showed that its sales were heavily reliant on China. ASML shares experienced a 20% drop since the release of the company's Q2 results, which shows the market was not at ease. The recent increase in US-China trade tensions creates additional risks for ASML, although the company itself does not mention this.
Broadcom is benefitting from the AI boom but there's more behind the scenes. Nvidia's AI growth will eventually slow, but the business is diversified.