Semiconductor Shake-Up: AI Can't Save Chipmakers From Market Meltdown
💻 A gloomy forecast from Dutch chip equipment giant ASML sent shockwaves through global markets this week, revealing a stark divide between booming AI demand and struggling traditional chip sectors. U.S. and Asian semiconductor stocks nosedived after ASML cut its 2024 sales outlook, with investors hitting panic buttons across the tech sphere.
Domino Effect in Tech Markets
NVIDIA—fresh off briefly dethroning Apple as the world’s most valuable company—saw its shares plunge 4.5%, erasing $158 billion in market value 💸. The ripple effect hit AMD, Intel, and Micron too, dragging the Philadelphia SE Semiconductor Index down 5% in its worst day since 2022.
ASML itself wasn’t spared: Its U.S.-listed shares crashed 16% after accidentally dropping earnings early. The report showed weak bookings and delayed orders from logic and memory chip makers outside the red-hot AI sector.
Asia's Chip Chill ❄️
The selloff spread to Asia on Wednesday: • TSMC (NVIDIA’s main AI chip producer) fell 2.3% • Samsung dropped 2.5% • SK Hynix slid 2.2%
This comes as Samsung warns of underwhelming Q3 profits, while TSMC gears up to report a 40% profit jump—proof that AI remains the industry’s lone bright spot 🤖💡.
Why It Matters
The pandemic’s chip-buying frenzy left factories overstocked, with companies now delaying new equipment orders. Analysts call ASML’s forecast the 'final boss level' 🎮 in this supply chain saga—a lagging indicator of challenges chipmakers have faced for months.
