Global Semiconductor Stocks Plummet Following Intel’s Earnings Miss and Layoffs Announcement
Global semiconductor stocks experienced a sharp decline on Friday after Intel Corp.’s disappointing earnings report for the June quarter and a major layoff plan sparked a sell-off in tech shares. Intel shares plummeted 21.51% in premarket trading in the U.S., following the announcement of a substantial earnings miss and a cost-reduction initiative, which includes laying off over 15% of its workforce to save $10 billion.
The downturn extended to Asian markets, where Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung posted losses of 4.6% and over 4%, respectively. TSMC holds the title of the world’s largest chip manufacturer, while Samsung is the leading global memory semiconductor firm. Additionally, SK Hynix, a supplier to Nvidia, closed more than 10% lower.
European semiconductor stocks were not spared from the sell-off either. Shares of ASML, a key supplier of advanced chip-making tools, dropped over 6% in early trading, while ASMI slid by 9%. Other European chipmakers, including STMicroelectronics and Infineon, also saw declines.
Intel’s lackluster results underscore the mixed performance within the semiconductor industry. While companies like AMD and Nvidia are thriving due to the artificial intelligence boom, others, such as Qualcomm and Arm, have yet to see significant financial gains from the emerging technology.
Adding to the sector’s woes is a broader global equity sell-off that originated in the U.S. and spread through Asia and Europe, heavily impacting tech-heavy indexes like the Nasdaq. The VanEck Semiconductor ETF, which tracks major semiconductor companies, closed around 6.5% lower in the U.S. on Thursday.
Several major U.S. chipmakers, including Nvidia, also posted premarket losses on Friday, with Nvidia trading approximately 3% lower.
Pat Gelsinger, Intel’s Chief Executive Officer, addressed new product plans at the Computex conference in Taipei, hoping to regain market share from competitors, including AI leader Nvidia. However, the markets responded negatively to the earnings miss and cost-cutting measures, intensifying the challenges facing Intel and the broader semiconductor sector.
Original Story https://www.cnbc.com/2024/08/02/intel-share-plunge-drags-down-global-chip-stocks-from-tsmc-to-samsung.html
Category :
Tags:
