Monday, November 11, 2024
HomeStocksChip stocks fall on ASML forecast cut, potential US AI chip export...

Chip stocks fall on ASML forecast cut, potential US AI chip export cap

-



U.S. semiconductor stocks fell on Tuesday after chip equipment maker ASML cut its annual sales forecast and a report said the Biden administration was considering capping sales of advanced artificial intelligence processors to some countries.

AI chip giant Nvidia fell 4.4%, retreating from a record high hit in the previous session that had put it on the brink of dethroning Apple as the world’s most valuable company.

Tuesday’s drop was set to reduce the AI chip major’s market capitalization by about $138 billion to $3.25 trillion, widening the gap with Apple’s value of $3.58 trillion.

Other chip firms, including AMD, Intel, Arm, Broadcom and Micron, fell between 2.3% and 6.2%, which dragged the Philadelphia SE Semiconductor Index down nearly 4% and weighed on the Nasdaq index.

U.S.-listed shares of ASML were down 12% after the Dutch company published results ahead of schedule in an apparent error, reporting weak bookings, lowering forecast, and indicating slower chip demand recovery outside AI sector.

“ASML’s fat finger error isn’t cause for concern in itself, but the content of the release didn’t make comforting reading for investors,” said Derren Nathan, head of equity research, Hargreaves Lansdown. Separately, Bloomberg News reported on Monday that U.S. officials have been considering implementing a cap on export licenses for AI chips to specific countries – mostly in the Persian Gulf region, citing national security concerns. Washington is increasingly concerned that the Middle East might serve as a channel for China to acquire advanced American chips that are prohibited from being directly shipped to the Asian country.

“With the AI revolution expected to play such a huge part in upping productivity and enabling other technological advances it’s not surprising the U.S. wants to do what it can to maintain its dominance,” said Danni Hewson, head of financial analysis at AJ Bell.



Source link

LATEST POSTS

RBI may defer rate cut call to February as inflation’s still hot

India's central bank is likely to defer a decision on slashing rates to at least February, economists said, illustrating the risks posed by imported...

JPMorgan Braces for ‘Impactful’ First Two Years of Trump

(Bloomberg) -- The first two years under Donald Trump’s second term could be “quite impactful” if policy changes are made...

Bitcoin hits record high as Trump edges closer to full control of Congress

Unlock the White House Watch newsletter for freeYour guide to what the 2024 US election means for Washington and the worldBitcoin has hit $80,000...

Number of EPFO subscribers up 7.6% at 73.7 million in 2023-24

The Employees’ Provident Fund Organisation witnessed 7.6% jump in number of contributing members in 2023-24 at 73.7million compared to 68.5 million in the preceding...

Most Popular

spot_img