Semiconductor stock investors face a new challenge. Stocks related to semiconductors around the world fell due to the bearish outlook for the Dutch company ASML Holding, a major manufacturer of semiconductor manufacturing equipment.
More than $420 billion (about 62.6 trillion yen) was lost in the Philadelphia Semiconductor Stock Index, an index of US-listed semiconductor stocks, and major Asian semiconductor stocks.
The warning from ASML poured cold water on semiconductor stocks, which were recovering from the summer selloff. Nvidia shares hit a record high earlier this week as worries about production problems with its latest artificial intelligence (AI) products eased.
ASML, the maker of the world’s most advanced semiconductor manufacturing equipment, has revised its earnings forecast due to a slump in areas other than AI. Stock prices have fallen the most since 1998.
ASML announces financial results prematurely due to ‘technical error’ – contributing to falling stock prices
In Asian markets on the 16th, rivals ASML fell. Tokyo Electron was down 10% at one point. The stock price of Taiwan Semiconductor Manufacturing Co., Ltd (TSMC), the largest contract manufacturer of semiconductors, which will announce its financial results on the 17th, temporarily fell 3.3%.
Some investors believe that ASML’s woes may be endemic to the company. Yoon Jun-in, CEO of Fibonacci Asset Management Global, said that “chip manufacturers have strategically reduced orders to ASML,” and whether this is due to cost cutting or other factors Although it is not clear whether this due to strategic reasons, he indicated that China’s economic stimulus measures could encourage semiconductor demand to return.
Original title:Global Chip Stocks Lose $420 Billion as ASML Shock Stops Back(excerpt)