The darling niche of the technology sector today is found in the semiconductor and chip-making industry, where most of the interest—and capital—has been focused since 2023. Pushed by secular tailwinds from artificial intelligence and other advancements, markets have somewhat priced in all potential future growth in these stocks, creating some risk in the coming quarters.
ASML provides crucial equipment for semiconductor manufacturing, but its recent earnings should not scare off investors.
A look at the day ahead in U.S. and global markets from Mike Dolan
Nvidia closed down 4.7% Tuesday while ASML closed 16% lower.
Investors and analysts are reviewing their assessments of computer chip equipment maker ASML , they said on Wednesday, after the company cut 2025 financial guidance, citing weakness in markets other than AI and delayed orders.
Dutch chip-equipment maker ASML Holdings N.V.'s ASML smaller-than-expected bookings for the third quarter and guidance cut sent shares of companies with exposure to artificial intelligence lower on Tuesday.
Chip stocks may see continued pressure in today's session as AI chip export restrictions and weak non-AI demand weigh on Nvidia, Broadcom, and ASML.
Europe's answer to the Magnificent Seven is leaving much to be desired after two of the Continent's biggest companies, ASML Holding and LVMH Moet Hennessy, disappointed investors.
Kevin Wang, semiconductor analyst at Mizuho Securities, discusses ASML's share plunge and its outlook for 2025.
Anna Edwards, Kriti Gupta, Lizzy Burden, and Mark Cudmore break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." -------- More on Bloomberg Television and Markets Like this video?
Dutch chip maker ASML suffers its worst sell-off since 1998 after it slashed its sales outlook in an earnings release it published accidentally. Chip stocks see heavy losses globally as a result.
ASML's shares plunged the most in 26 years after it booked only about half the orders analysts expected. The Dutch company lowered its guidance for 2025 and reported bookings of €2.6 billion ($2.8 billion) in the third quarter, missing an average estimate of €5.39 billion by analysts surveyed by Bloomberg.