Disappointing quarterly results of ASML and the upcoming losses of an artificial intelligence company, Nvidia, due to the fresh US government regulations, they were besides on Wednesday on shares of German semiconductor companies. Company shares Infineon , Aixtron , Süss MicroTec and Siltronic recorded drops of 2.6–6.8 percent. The shares of the Dutch semiconductor equipment maker ASML dropped by a good 7 percent.
ASML does not meet the expectations of inflow of orders
ASML confirmed its objectives for the current year, despite the unpredictable US tariff policy. However, fresh tariff announcements have increased uncertainty regarding the economical environment and the situation will stay dynamic for any time, said the company, continuing to focus on artificial intelligence (AI) as a driving force for growth. At the beginning of the year, however, ASML felt the effects of the ongoing weakness of the integrated circuits sector.
Analyst JPMorgan Bank Sandeep Deshpande wrote in his first reaction to ASML results that marketplace concerns would likely focus on incoming orders. This is simply a consequence far below the consensus of estimates. However, it is known from the past that this indicator is subject to strong fluctuations.
Nvidia fears failure of billions
In addition, the temper is aggravated by the fact that the giant semiconductor industry, Nvidia, has to face severe restrictions on the supply of AI integrated circuits to China by the U.S. government. This brings to Nvidia loss of billions of dollars. “With the ban on Nvidia's H20 exports to China, we are witnessing a fresh escalation of the current trade conflict”, said marketplace expert Thomas Altmann of QC Partners’ asset manager. The environment remains unstable. "Era of predictability is already history, both for companies and investors".
