- Shares of US semiconductor stocks fell over 3% amid rising competition from China and Europe
- Micron, SK Hynix, AMD, SanDisk, Nvidia, and Intel all opened with notable declines in early trading
- ASML reported strong demand for chip-printing tools, risking supply shortfalls in 2027 and 2028
Shares of semiconductor stocks such as Micron, SK Hynix, SanDisk Corp., Advanced Micro Devices (AMD) and Nvidia fell over 3% at the opening bell, amid reports from China's CXMT regarding their advancement in chip design, as well as Europe's ASML posting strong results both of which increasing the competition for US chip stocks.
Micron commenced trade at a downturn of 1.31% to $940.51 apiece, while SK Hynix saw a decline of 3.72% to $151.21 after markets opened. AMD was at a downturn of 3.29% to trade at $585.64, minutes into trade, while SanDisk opened 2.56% lower to $1,444.39. Nvidia started the trading session at a downturn of 1.65% to $224.74. Intel traded lower at a downturn of 2.57% to $100.16 after the opening bell.
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Semiconductor stocks across the world saw a notable sell-off owing to the news regarding CXMT's progress in chip design.
ASML stated that the AI-led demand for its chip-printing tools is so strong that it may not be able to completely meet customer demand in 2027 or 2028.
"With such strong visibility and an order book momentum that continues to increase quarter on quarter this year, we now expect that our supply as currently planned for both 2027 and 2028 will not fully meet the demand of our customers," ASML said.
The company said it is looking for measures to increase capacity for 2028 beyond the 30%.
Wall Street opened mixed on Wednesday, October 14 US consumer prices rose the most since April, raising bond yields and worries that the Federal Reserve will need to raise interest rates to deal with inflation.
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Nasdaq Composite dropped 0.65% to 27,027.44, S&P 500 declined 0.38% to 7,775.9 while Dow Jones Industrial Average traded 0.18% up at 51,764.26 by 7 pm IST.
The consumer price index climbed 0.6% in September from the previous month, according to Bureau of Labor Statistics data, released on Wednesday. The surge driven by rising fuel costs, while a gauge of underlying price pressures also rose more than expected.
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