Chip stocks fell on Wednesday after ASML, a key developer of semiconductor manufacturing equipment, said that bookings fell by 61% sequentially during the first quarter, a steeper drop than investors had expected.
AMD’s
stock fell over nearly 6%, Nvidia
shares fell over 3%, Intel
shares fell under 2% and Qualcomm
was off over 2%. But the biggest drop affected chip technology firm Arm
, which was trading nearly 12% lower on Wednesday.
ASML
fell over 7% on a day when the entire S&P 500 index was only down less than 1%.
ASML is essentially the only supplier of machines that are needed to build the most advanced chips in the world, which often cost hundreds of millions of dollars each. The Dutch company shipped 449 “lithography” machines in 2023, and its main customers include the world’s top processor foundries: TSMC, Samsung and Intel.
Its top two customers accounted for over half of its 2023 sales. Sales were down in Taiwan and South Korea, where TSMC and Samsung are based, respectively.
www.cnbc.com/2024/04/17/asml-earnings-drag-semiconductor-stocks-lower.html