From Yahoo Finance, July 17:
Chip stocks Nvidia (NVDA), Taiwan Semiconductor Manufacturing (TSM), and ASML (ASML) have all soared this year thanks to investor bets on the artificial intelligence boom. On Wednesday, their momentum came to a screeching halt.
The three stocks were down more than 5% in midday trading on Wednesday for reasons ranging from investor concern over export restrictions to a broader rotation out of tech stocks.
Chip stocks plummeted on Wednesday as the Biden administration reportedly mulled tighter restrictions on China and Republican candidate Donald Trump hinted Taiwan should pay for US defense against any Chinese aggression. One headwind that emerged was the potential for tighter restrictions on exports of semiconductor technology to China.
Bloomberg reported the Biden administration is considering implementing a more severe curb involving controls on foreign-manufactured products that use even the smallest amount of American technology.
Current restrictions have already impacted US-based companies’ ability to sell to China. Nvidia sales to China decreased as a percentage of total data center revenue from 19% in fiscal year 2023 to 14% in fiscal year 2024.
ASML stock saw the steepest decline on Wednesday, falling as much as 11%.
Shares of the Netherlands-based chip equipment maker were also pressured following its third quarter guidance.
While ASML beat its second quarter top- and bottom-line expectations, its revenue forecast for the current quarter came in shy of the consensus analyst estimate.
The company also said it expects quarterly gross margin in the range of 50% to 51% versus Wall Street expectations of 51.1%....
....MUCH MORE
The highest of high tech. NVDA designs the chips they want (also the software to run on the chips), TSM makes the chips (on track to put a trillion transistors on a single GPU chip), ASML makes the machines that TSM needs to make to make the chips.
Truly amazing.