Asian chipmaking stocks experienced a downturn on Wednesday, following a lackluster sales forecast for 2025 from industry leader ASML. Market attention is now shifting toward the upcoming earnings report from Taiwan’s TSMC.
Japanese chip stocks were notably impacted, with Lasertec Corp (TYO:6920), Tokyo Electron Ltd. (TYO:8035), and Dainippon Screen Mfg. Co., Ltd. (TYO:7735) seeing declines ranging from 9% to 14%.
In South Korea, major memory chip manufacturers SK Hynix Inc (KS:000660) and Samsung Electronics Co Ltd (KS:005930) also faced losses, dropping 0.7% and 1.6%, respectively.
The decline in Asian stocks followed a steep drop of over 16% in ASML’s U.S. shares on Tuesday. Despite reporting better-than-expected earnings for the September quarter, driven by robust demand for artificial intelligence, ASML’s overall sales outlook was dampened by weakening demand from sectors outside of AI.
ASML, the sole major supplier of advanced chipmaking equipment globally, serves as a key indicator for the broader semiconductor industry. The company’s grim outlook contributed to a more than 4% decline in shares of market leader NVIDIA Corporation (NASDAQ).
Adding to the pressure on chip stocks was news that the U.S. government plans to limit the sale of AI chips to select countries in the Gulf and Middle East, further impacting market sentiment.
As investors brace for TSMC’s (TW:2330) (NYSE) third-quarter earnings report due on Thursday, expectations remain high. A Reuters survey predicts that TSMC, the world’s largest contract chipmaker, will report a 40% increase in quarterly profit, driven by strong demand for AI-related chips.
However, TSMC has cautioned that demand from non-AI applications may be weak. Monthly figures released indicated TSMC achieved third-quarter revenue of T$759.69 billion ($23.62 billion), surpassing Reuters’ estimates of T$750.36 billion.
Despite these positive revenue figures, TSMC’s shares in Taipei fell approximately 1%, mirroring losses among its regional counterparts.
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