Nvidia, ASML and TSMC stock prices fall - why?
Of chip stocks $NVIDIA (NVDA.US)$ 、 $Taiwan Semiconductor (TSM.US)$ 、 $ASML Holding (ASML.US)$ Both have skyrocketed this year due to investors' bets on the artificial intelligence boom. That momentum came to an abrupt halt on Wednesday.
These three stocks declined for various reasons, from investors' concerns about export restrictions to movements away from high-tech stocks.
What has become a headwind is the possibility of tightening restrictions on semiconductor technology exports to China.
Bloomberg reported that the Biden administration is considering implementing stricter regulations, including regulations on foreign-made products using even slightly American technology.
Current regulations are already impacting US companies' ability to sell to China. The ratio of NVIDIA's sales to China to total data center sales will decrease from 19% in the 2023 fiscal year to 14% in the 2024 fiscal year.
ASML's stock price fell the most on Wednesday, falling more than 12%. The stock price of this chip equipment manufacturer headquartered in the Netherlands received guidance for the third quarter and came under pressure.
Although ASML surpassed top bottom line forecasts for the second quarter, sales forecasts for this quarter fell short of analysts' consensus expectations.
The company also predicts that the quarterly gross profit margin will range from 50% to 51% compared to Wall Street's forecast of 51.1%.
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