ASML lowers outlook, sending Nvidia and AMD AI chip stocks lower

ASML Holdings (ASML) is leading shares of chipmakers like Nvidia (NVDA) and Advanced Micro Devices (AMD) to fall after the company cut its 2025 forecast, seemingly sounding the alarm that there are problems in the chip sector. Daniel Newman, CEO of Futurum Group, joins Market Domination's Julie Hyman and Josh Lipton to explain ASML's guidance as reports suggest the Biden administration is considering limiting sales of AI chips to certain countries.

“I don’t think what ASML has come out with is really negative for the AI ​​industry,” Newman tells Yahoo Finance, noting that “the CEO actually said that when he came out and made the announcements , talked about the power of AI.” .”

“What we’ve seen is a fork in the road. We're seeing this kind of delayed recovery in some of the more traditional communications networks, industrial and IoT (Internet of Things) chips (and) even PCs and devices. We saw some early delivery data on these AI PCs that may not have been as strong, but the data center AI numbers were not impacted.”

Newman finds Nvidia's selloff after its share price hit an all-time high yesterday “surprising.”

“I think some of the other areas could have been sold, but (for) Nvidia … maybe it was just more of a lead-in thing and people were just looking for a reason to sell,” Newman says, pointing out that Nvidia and AMD shares are rebounding from recent gains.

He sees it as a “two-sided argument” as the recovery slows: “And that means investment in capital goods is slower, and the fact that you're not able to sell to China is obviously going to happen too impact ASML.”

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This post was written by Naomi Buchanan.