Chip sector on a downward trend: ASML lowers forecasts

The Dutch company ASML draws attention with a revision of its forecasts for the year 2025, causing the stocks of semiconductor giants like Nvidia and Advanced Micro Devices to drop into the negative. The adjustment of expectations is considered an alarm signal for the entire chip sector, particularly in the context of the Biden administration's considerations to restrict the sale of AI chips to certain countries. However, Daniel Newman, CEO of the Futurum Group, does not see the situation as entirely bleak. In a conversation with Julie Hyman and Josh Lipton from Market Domination, Newman explained on Yahoo Finance that the adjustment by ASML should not be viewed negatively for the AI business. The recent development at ASML reflects the dual recovery in the technology sector. Traditional communication networks, industrial and IoT chips, as well as PCs and devices, are showing some slowdown, while growth in the data center AI sector remains stable. The decline in Nvidia's stock, after its recent all-time high, is surprising. Newman expressed astonishment over the sell-off: "Perhaps investors are simply looking for a reason to take the recent gains," was his analysis. Overall, Newman views the current development as part of a "double-edged discussion," especially against the backdrop of slowed investment activities in tangible assets. The restricted sales opportunities to China could have a noticeable impact on ASML and contribute to the uncertainty in market events.