Major computer chip manufacturers like Nvidia and TSMC slumped this week as actions by President Biden and Donald Trump fueled renewed geopolitical concerns among investors.
Shares of the provider of chip-making equipment dove on a report that it could face tougher curbs on sales to China. Analysts say the move in ASML stock looks like an overreaction.
One underappreciated aspect of the artificial intelligence revolution is its ability to make household names of previously obscure companies and the people running those companies. The rising star that is chipmaker Nvidia Corp, a former gaming company turned pillar of the AI boom, takes the cake in this respect.
Chip stocks reeled Wednesday after a double political threat led to the sector's worst day since the start of the pandemic.
Stocks like Nvidia, AMD, and SMCI are all down on Wednesday following ASML's earnings release.
Dutch technology giant ASML Holding NV (NASDAQ:ASML)'s valuation was severely punished when reports of a ramping up of existing microchip export restrictions to China emerged from the US on Wednesday. ASML's share price flopped 11% by the closing bell, effectively wiping US$50 billion of value from the company.
Downgraded ASML Holding N.V. to “Sell” due to export restrictions to China and uncertain near-term risks. The Biden administration considering severe trade restrictions on companies like ASML selling advanced semiconductor technologies to China. ASML's recovery in new bookings signals broader semiconductor equipment market recovery, but uncertainties remain due to potential export restrictions.
ASML Holding N.V. (NASDAQ:ASML ) Q2 2024 Earnings Conference Call July 17, 2024 9:00 AM ET Company Participants Skip Miller - Vice President, Investor Relations Christophe Fouquet - President and Chief Executive Officer Roger Dassen - Executive Vice President and Chief Financial Officer Conference Call Participants Krish Sankar - TD Cowen Alexander Duval - Goldman Sachs Tammy Qiu - Berenberg Francois Bouvignies - UBS Stephane Houri - ODDO BHF Andrew Gardiner - Citi Chris Caso - Wolfe Research C.J.
Nvidia (NVDA), Qualcomm (QCOM), and other chip stocks tumbled Wednesday following reports of potential government moves that could negatively impact the sector.
ASML reported better-than-expected quarterly results, but investors are more focused on reports that Washington might tighten restrictions on doing business with China. Although ASML is not a U.S. company, it has felt the pressure of American sanctions.
Dutch chip production equipment giant ASML (NASDAQ: ASML ) and shares of all chipmakers are being dragged down today on a warning about President Joe Biden and his administration's new export restrictions to China. Geopolitical tensions are also hurting chip stocks after Republican candidate former President Donald Trump said that Taiwan should pay for the U.S. defense of its island.
Demand for machines used to build computer chips is likely to increase due to the boom in demand for generative artificial intelligence.