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ASML's Divergence With AI Giants Led by Nvidia Seen in Options Market
$ASML Holding (ASML.US)$ continued slump signaled divergence among chipmakers, with those with the biggest exposure to artificial intelligence led by $NVIDIA (NVDA.US)$ showing greater resilience. As expected, that's also spilling over to the options market.
ASML's American depositary receipts (ADRs) tumbled Wednesday, taking its two-day loss to almost 21%, after the Dutch company reported a day earlier that its net bookings shrank by about half in the third quarter from the previous three months. Those orders missed analysts' expectations by 51%, according to estimates compiled by Bloomberg.
The Dutch company that produces machines for semiconductor making counts Samsung Electronics and $Intel (INTC.US)$ as its second and third biggest customers. ASML has been weighed down by the slow recovery.
"I think today without AI, the market would be very said, if you ask me," ASML Chief Executive Officer Christophe Fouquet said in the company's earnings call with analysts Wednesday, according to a transcript published by Bloomberg. "But for the rest, I think our customer continues to confirm that when it comes to mobile, when it comes to PC, sorry, when it comes to automotive, the recovery is not what I think everyone had wished for."
While ASML posted an almost 12% growth in revenue in the three months that ended in September, that's far lower than the 122% expansion seen by AI leader Nvidia in the second quarter. Even though Nvidia's growth is seen slowing, analysts on average still expect the AI darling to report an almost 83% gain in revenue to about $33 billion in the third quarter.
The biggest volume among ASML contracts is in put options that give the holders the right to sell the ADRs at $650 in two days. That could signal worries of potential continued decline for the ADRs that are now trading less than $40 above that strike price.
The bearish sentiment for ASML is also seen in the capital trend data. Outflows from ASML outpaced inflows by $271.7 million. Nvidia, on the other hand, saw a net inflow of more than $405 million.
The heaviest volume among Nvidia options are in callsgive the holders the right to buy the stock at $134 by Friday, followed by $135 calls. That may be viewed as a sign that the stock will sustain its gains, allowing the contracts tobe in-the-money before they expire in two days.
Share your thoughts on ASML and Nvidia in the comments section.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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54088 FROM RWS : 3299
pokemon pang : tqvm for aharing
Laine Ford : no comment now
73372627 : WRONG. ASML it is an supplier for semiconductors it is not an direct market maker. The quarter results it is absoluty normal and positive.
Let look: They come with 3 and 2.5 nm technology. The producers of the chips has to adapt to this technology before aquire the hardware neccesary. Then they are almost finish the 2 nm. which is presume to come in 2025.
Those technologies are use-less if the producers are not ready. I will not be surprise if NVDA for theirs new plant will not aquire only 2 nm.
Miss Luzi Ann Santos, you wrote from an very short point of view and vision. ASML has nothing to do with the Semi market tendences. They produce the tech support of what the others need. How you parellel ASML with Semi producers is just BIAS.
籠的傳人288 : infact they both have because ASML is the apex predator of the food chain. Asml makes the machine for semiconductor
companies like tsm. Tsm , than sell the chips to nvda, everyone happy 
.
Lady Vic : ….