Global chip stocks fall on disappointing ASML outlook and possible plateauing of U.S. exports

A worker produces chips at a semiconductor manufacturing company in Binzhou, China, June 4, 2024.

Nuphoto | Nuphoto | Getty Images

Global chip stocks fell on Wednesday after Dutch semiconductor equipment maker ASML issued disappointing sales forecasts, sending the sector's global stocks lower.

ASML shares extended their losses into the second day of the European trading session, down 5%. The company's stock fell 16% on Tuesday, losing 49.2 billion euros ($53.6 billion) of its market capitalization in a single day, according to CNBC calculations.

ASML's decline also sent other European semiconductor companies into the red on Wednesday. ASMI, a Netherlands-based company that provides wafer processing equipment for the semiconductor manufacturing industry, fell 2.3%. Fellow chip equipment maker BE Semionductor fell 1.9%.

Dutch semiconductor company STMicroelectronics lost 1.2%, while German chipmaker Infineon lost 1.1%. Soitec, French manufacturer of semiconductor materials, falls 0.9%

Asia declines

In Asia, meanwhile, shares of Japanese semiconductor manufacturing company Tokyo Electron posted the biggest losses, falling almost 10%. Renesas Electronics fell more than 3% and Advantest, a supplier of testing equipment, fell 0.8%.

Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry, known internationally as Foxconn, fell 3.3% and 1.6%, respectively.

South Korean chipmaking giant SK Hynix, which makes high-bandwidth memory chips for AI applications for Nvidia, fell 1.6%. While Samsung Electronics, the world's largest maker of dynamic random access memory chips, saw its shares fall 1.9%.

Losses in the region's semiconductor sector also weighed on major indexes. Japan's Nikkei 225 index lost more than 2%, South Korea's Kospi lost 0.6% and Taiwan's weighted index lost 0.7%.

ASML reports early

In a report released on Tuesday, ASML, headquartered in Veldhoven, Netherlands, said it expects its net revenue for 2025 to be between €30 billion and €35 ​​billion ( 32.7 and 38.1 billion dollars), in the lower half of the forecast range. had previously provided.

Net bookings for the September quarter were 2.6 billion euros ($2.83 billion), the company said, well below the LSEG consensus estimate of 5.6 billion. euros. Net sales, however, exceeded expectations, at 7.5 billion euros.

The company's CEO warned of customer caution and said “the recovery is more gradual than expected.”

After ASML fell 16%, other global chipmakers plunged. Nvidia fell 4.7% and AMD fell 5.2%.

Also on Tuesday, Bloomberg reported that Biden administration officials discussed limiting sales of Nvidia's advanced AI clips to certain countries in the interest of national security, further dampening investor sentiment at the with regard to the semiconductor sector.

ASML faces a tougher business outlook in China due to export restrictions imposed by the United States and the Netherlands on its shipments.

Chief Financial Officer Roger Dassen said Tuesday that he expects the company's China operations to show a “more normalized percentage in our order book and also in our business.”

“So we expect China to account for around 20% of our total revenue for next year,” he said. In its June quarter results presentation, ASML said 49% of its sales came from China.

ASML's business in Asia will likely face continued headwinds, Eugene Hsiao, head of China equity strategy at Macquarie Capital, said Wednesday on CNBC's “Squawk Box Asia.”

While it makes “total sense” for ASML to continue working with China from an “economic perspective,” he said, there are “broader issues between the governments that are morphing into issues economic”.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos