Black day for semiconductor sector in the whole world. Shares of major chip companies fell sharply on Friday, August 2, dragged down by disappointing results of Intel. The loss of the US giant triggered a chain reaction in world markets.
The actions of Intel sorry 21.51% in pre-market trading on Wall Street, after the company reported a drop in earnings in the second quarter of 2024 and plans to lay off more than 15% of its staff, as part of a $10 billion cost-cutting plan .
What is happening in Asian markets?
Even major semiconductor manufacturers operating in Asian markets were not spared. Taiwan Semiconductor Manufacturing (TSMC)the world’s largest chipmaker, saw its share rise 4.6% in Taipei, while Samsung closed 4.1% lower in Seoul. Also SK Hynixsupplier of Nvidiasuffered a sharp decline, closing down 10.2%.
The Old Continent is struggling
The negative trend also hit European markets hard. Asml, a leading maker of advanced chip manufacturing tools, lost more than 10% on the Amsterdam list price. Other companies in the sector are suffering heavy declines, such as the case of STMicroelectronics e Infineon.
The result of Intel paint a mixed picture for the semiconductor industry. If on the one hand there are companies AMD and Nvidia which continues to evolve thanks to the boom in artificial intelligence, Qualcomm and Arm they haven’t seen the benefits yet.
Focus on ETF VanEck Semiconductor
To make the situation worse, there was a global sell-off of shares, which started in the United States and then spread to Asia and Europe, weighing particularly on the Nasdaq, rich in technology stocks, and in semiconductor stocks. L’ETF VanEck Semiconductorwhich includes major names in the sector, closed with a decline of 6.5% in the United States the session is on Thursday 1 August.
The crisis of Intel he may have effect which is taking hold in the semiconductor market, a sector already tested by global economic turmoil and growing technological competition between Asia and the United States. (All rights reserved)