The chip sector is trembling, and the Nasdaq 100 is paying for it

Red day on Wall Street. Major US indices registered a decline, driven by weakness in the technology sector, which felt the effects of the stock market earthquake that rocked Europe, with its epicenter at ASML. The Dutch firm published a day earlier, without even meaning to, its latest results, which showed weaker sales than expected. This resulted in a 16% decrease in ASML.which will trigger a flight from chipmakers as market concerns spread over tightening U.S. restrictions on semiconductor exports. As a result, Nvidia shares lost almost 5%, leaving the record levels with which it capped yesterday’s session.

The Dutch company, a leader in lithography machines needed to make chips, inadvertently released results that sent shivers through investors. According to reports, The firm expects sales to be between 30,000 and 35,000 million euros.a range that is at the lower end of the previously reported estimate range. In addition, reserves for the last quarter reached 2.6 billion euros, significantly lower than the expected 5.6 billion euros. analysts.

In addition, CEO Christophe Fouquet noted that although the potential of artificial intelligence is actively developing, there are other market segments that take longer to recover. According to Fouquet, This recovery will be more gradual than expected.. That spooked investors on both sides of the Atlantic, causing tech sectors in Europe and North America to fall. In fact, the Nasdaq 100 is the US index that lost the most on the day.

The technology indicator lost 1.37% to 20,159 units due to a decline in chip manufacturing firms, led by ASML (-16.26%). They were followed by KLA (-14.70%), Applied Materials (-10.69%), ARM (-6.89%), AMD (-5.22%) and Nvidia (-4.69%). Collapse of the semiconductor sectorIt also comes as information indicates Washington is willing to tighten its grip on chip exports to other countries.

For its part, shares of Nvidia, which hit an all-time closing high of $138 yesterday, are now down 4.52% to $131.84 per share. Rumors that the United States may impose restrictions on chip sales in the Gulf, and ASML’s 16% collapse after accidentally filing its reports a day ahead of schedule, confirming suspicions that its weaker-than-expected sales have cost the chip sector dearly USA. expensive. AMD is down another 5.22% and Broadcom is down 3.47%, with Intel (-3.23%) and Qualcomm (-2.22%) also losing ground.