Semiconductor firms such as Nvidia, TSMC and ASML are getting caught ever more directly in the geopolitical crosswinds between Washington and Beijing, as Bloomberg's Tom Mackenzie explains. -------- More on Bloomberg Television and Markets Like this video?
Investors in the semiconductor sector are facing renewed uncertainty following a sobering outlook from ASML Holding NV, one of the world's leading chip equipment manufacturers. The Dutch company's revised forecast triggered a sharp decline in global chip stocks, with combined losses exceeding $420 billion across US-traded chipmakers and leading Asian semiconductor companies.
Asian chip stocks fell on Wednesday after Dutch semiconductor equipment maker ASML posted disappointing sales forecasts, driving down global stocks in the sector. Shares of Japanese semiconductor manufacturing firm Tokyo Electron logged the biggest loses, dropping nearly 10%.
Computer chip equipment maker ASML's deep cuts to its 2025 sales forecast sparked a sell-off in chip stocks on Tuesday over worries that global chip demand may be faltering.
ASML Holding N.V. dropped 16% in Tuesday trading. The company released earnings early accidentally, showing poor guidance. Despite a strong moat, ASML appears to have lost a major growth driver.
Chip stocks are tumbling. But why?
Major U.S. equities indexes moved lower Tuesday as semiconductor stocks tumbled. Both the S&P 500 and the Dow fell roughly 0.8% on Tuesday, retreating from record closes posted in the previous session.
Sellers came into the stock market Tuesday after chip-equipment firm ASML warned of weaker-than-expected revenue in 2025.
Despite weak order growth and export restrictions to China, I maintain a “Buy” rating for ASML Holding N.V. with a one-year target price of US$880 per share. ASML's revenue growth is driven by High NA EUV products, despite a significant decline in China revenue due to geopolitical tensions and export restrictions. I project modest 3% revenue growth for FY25, with a 14% normalized growth rate from FY26 onwards, and anticipate no earnings surprises for FY25.
OJ said stocks were supposed to be on cruise-control this week, so a big selloff around ASML Holdings (ASML) and the first serious bond rally since the Fed cut makes things interesting. ======== Schwab Network ======== Empowering every investor and trader, every market day.
ASML Holding's (ASML) soft guidance triggered a big sell-off in the stock, along with A.I. leaders like Nvidia (NVDA) and AMD Inc. (AMD).
Nvidia (NVDA) shares fell from yesterday's all-time closing high, and shares of other chipmakers declined, following indications the Biden administration is considering limiting the export of artificial intelligence chips to some countries in the Middle East.