Dragged down by ASML, the opening of Asian chip stocks will be under pressure following a sharp decline in European and American chip stocks.
Europe's highest market capitalization technology company$ASML Holding (ASML.US)$The total value of new orders in the first quarter fell far short of expectations, falling sharply by 61% from the previous month, dragging European and American chip stocks down sharply.
On April 17, Asmack's financial report showed that in the first quarter, the company's new order amount was 3.61 billion euros, far lower than the market's forecast of 5.1 billion euros. Previously, the fourth quarter of 2023 had a record order volume of 9.19 billion euros. Asmack explained in its earnings report that the decline in new orders was mainly due to a sharp drop in demand for the most advanced EUV lithography machines, and the order amount dropped sharply from 5.6 billion euros in the previous quarter to 656 million euros. Second-quarter sales are expected to be weaker than expected before demand begins to pick up.
Affected by this, Asmack's US stocks closed down 7.09% overnight. Other chip stocks have also been dragged down,$Micron Technology (MU.US)$fell by more than 4%,$Broadcom (AVGO.US)$fell by more than 3%,$Qualcomm (QCOM.US)$fell by more than 2%,$Intel (INTC.US)$It fell 1.6%.$Arm Holdings (ARM.US)$The stock price dropped the most, falling nearly 12%, reducing its gains since this year to 43%. Because$SoftBank Group (ADR) (SFTBY.US)$Holding the majority of Arm's shares caused its share price to drop 4.28% on Wednesday.
Other chip manufacturing equipment suppliers also experienced a decline on Wednesday.$Applied Materials (AMAT.US)$,$KLA Corp (KLAC.US)$Both fell by more than 4%,$Lam Research (LRCX.US)$It fell more than 5%.
Following the sharp decline in European and American chip stocks, the opening of Asian chip stocks will be under pressure. Tony Sycamore, a market analyst at IG Australia, said, “The results announced by Asma may be an early warning for tech giants that will release financial reports in the coming week. Chip stocks are likely to fluctuate, and any chip-related stock will face a difficult day.”
Meanwhile, some analysts believe that the decline in Asmack orders reminds people that despite a surge in demand for chips used in artificial intelligence technology, many other industries are still facing the challenge of slowing demand.
Daniel O'Regan of Mizuho Securities wrote: “With$Samsung Electronics Co., Ltd. (SSNLF.US)$und$Taiwan Semiconductor (TSM.US)$Clean up hardware inventory for smartphones, computers, and cars, and they're delaying new orders.”
Editor/Somer