Intel Chief Executive Officer Pat Gelsinger speaks during the Computex conference in Taipei, Taiwan, Monday, June 4, 2024. Gelsinger took to the stage at Taiwan’s Computex show to talk about new products that are expected to help the company reverse a tide of market share losses to peers, including AI leader Nvidia Corp. Photo by Annabel Chi/Bloomberg via Getty Images
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Global semiconductor stocks fell on Friday after U.S. chipmaker Intel’s shares tumbled on poor earnings and a global sell-off weighed on tech stocks.
Intel The stock was down 21.51% as of 4:37 a.m. ET in U.S. pre-market trading on Friday after the company reported significantly weaker-than-expected fourth-quarter profits and said it would lay off more than 15% of its workforce as part of a $10 billion cost-cutting plan.
In Asia, Taiwan Semiconductor Manufacturing Co., Ltd. Shares of Samsung Electronics, known as TSMC, closed down 4.6% in Taiwan, while Samsung was down more than 4% at the close of trading in South Korea. TSMC is the world’s largest chipmaker, while Samsung is the world’s largest memory semiconductor company.
Samsung’s rival SK Hynix, which supplies US giant Nvidia, also fell sharply, closing down more than 10%.
Selling continued in Europe. ASMLShares in the company, which sells key tools needed to make cutting-edge semiconductors, were down more than 6% as of around 4:23 a.m. ET in the Netherlands. Asumiwhich is also traded in the Netherlands, fell 9%. STMicroelectronics and Infineon Both were low.
Intel’s performance adds to a complicated picture for the semiconductor industry as a whole. Am and NVIDIA It continues to thrive on the boom in artificial intelligence. Other players include: Qualcomm and Arm have yet to see the benefits of the technology translate into financial performance.
Adding further pressure to semiconductor stocks is a global sell-off that began in the U.S. and spread to Asia and Europe, weighing particularly on the tech-heavy Nasdaq and semiconductor stocks.
The VanEck Semiconductor ETF, which includes major stocks from the sector, closed down about 6.5% in U.S. trading on Thursday.
Major U.S. semiconductor stocks also fell in U.S. premarket trading on Friday. NVIDIA It is trading down about 3%.
