US Export Restrictions and Geopolitical Tensions Send Global Chip Stocks Plummeting: ASML, Nvidia, TSMC, and Tokyo Electron Affected

Taiwan, Taiwan Taiwan, Province of China[a]
ASML, Nvidia, TSMC, and Tokyo Electron were among the affected companies.
Biden administration considering stricter US export controls under FDPR affecting non-US companies.
Global chip stocks declined on July 17, 2024 due to US export restrictions and geopolitical tensions.
Trump's comments about Taiwan defense raised doubts about US commitment.
TSMC expected to report a 30% rise in second-quarter profit on July 18.
US Export Restrictions and Geopolitical Tensions Send Global Chip Stocks Plummeting: ASML, Nvidia, TSMC, and Tokyo Electron Affected

Global chip stocks experienced significant declines on July 17, 2024, with ASML, Nvidia, TSMC, and Tokyo Electron among those posting drops due to reports of tighter US export restrictions and geopolitical tensions. The Biden administration is reportedly considering a rule to clamp down on companies exporting critical chipmaking equipment to China under the US foreign direct product rule (FDPR). This regulation allows controls on foreign-made products even with minimal American technology involvement, potentially affecting non-US companies. President Joe Biden and Chinese counterpart Xi Jinping are expected to meet at the APEC summit in November. Meanwhile, former US President Donald Trump's comments have raised doubts about US commitment to defend Taiwan if he becomes president and during a potential attack by China.

TSMC is expected to report a 30% rise in second-quarter profit on July 18, 2024, thanks to soaring demand for advanced chips used in artificial intelligence applications. The company has benefited from the surge towards AI and has spent billions building new factories overseas. However, ASML's Q3 revenue guidance was light despite its strong earnings report and surging bookings.

The geopolitical tensions and Trump's comments weighed on chip stocks in the US as well, with the VanEck Semiconductor ETF down 3.5% in premarket trading, Nvidia falling 4%, and Arm and Applied Materials among other laggards.

The Biden administration's potential export restrictions could impact not only Taiwanese companies but also Dutch-based ASML and others. The US FDPR allows controls on foreign-made products even if they use the smallest amount of American technology, potentially affecting non-US companies. This move comes as tensions between the US and China continue to escalate over various issues, including trade disputes and territorial claims.

The geopolitical tensions also raise concerns about Taiwan's defense if Trump becomes president again. In a Bloomberg Businessweek interview published late on July 16, 2024, Trump claimed that Taiwan should pay the US for defense and questioned its value as an ally. This comment has raised doubts about the US commitment to defend Taiwan from a Chinese attack if Trump returns to power.

TSMC's second-quarter earnings are due on July 18, 2024, and investors will be closely watching for any updates on the company's outlook for the current quarter and full year. The chipmaker has maintained its guidance for capital spending this year at $28 billion to $32 billion but could potentially raise it given the strong demand for advanced chips.


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Confidence

90%

Doubts
  • Is the Biden administration's potential export restriction rule definitive?
  • What is the exact impact of Trump's comments on US defense policy towards Taiwan?

Sources

84%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

S&P 500 futures fall 1% as investors continue to dump tech winners like Nvidia: Live updates

CNBC News Alex Harring, Tuesday, 16 July 2024 22:06
  • Unique Points
    • Stock futures slid on Wednesday as investors continued to pull back on megacap technology shares.
    • ,
  • Accuracy
    • Dow Jones Industrial Average futures shed 0.3%.
    • S&P 500 and Nasdaq-100 futures lost 1% and 1.5%, respectively.
    • Apple and Tesla each dropped around 2% before the bell.
    • Semiconductor stocks struggled within the tech sector following a report of potential tougher trade restrictions.
    • The VanEck Semiconductor ETF (SMH) fell nearly 3% following the report.
    • Nvidia and U.S.-listed shares of Taiwan Semiconductor lost around 4% and 2%, respectively, in the premarket.
    • Five Below shares plummeted more than 15% after the company slashed its second-quarter outlook and announced the departure of CEO Joel Anderson.
    • Donald Trump will permit Federal Reserve Chair Jerome Powell to finish his term if elected in November.
  • Deception (50%)
    The article contains selective reporting as it focuses on the negative performance of certain tech stocks and semiconductor companies without providing a balanced perspective. It also uses emotional manipulation by stating that 'investors are pulling back on megacap technology after the group's monster run this year.' This statement implies that investors are making irrational decisions, which may not be the case.
    • That offered the latest sign of investors pulling back on megacap technology after the group’s monster run this year as artificial intelligence captured the market’s interest.
    • Semiconductor stocks struggled in particular within the tech sector following a Bloomberg News report that the Biden administration is considering tougher trade restrictions if companies continue granting China access to U.S.-made technology.
    • The rotation out of high-flying technology shares continued.
  • Fallacies (85%)
    The article contains some inflammatory rhetoric and appeals to authority. It also uses dichotomous depictions in describing the market's reaction to interest rate cuts and the impact of trade restrictions on technology companies. However, these fallacies do not dominate the content of the article, so a score above 85 is warranted.
    • The group’s monster run this year as artificial intelligence captured the market’s interest.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Global chip stocks from Nvidia to ASML fall on geopolitics, Trump comments

CNBC News Arjun Kharpal Wednesday, 17 July 2024 09:46
  • Unique Points
    • Global chip stocks experienced significant declines with ASML, Nvidia, TSMC, Tokyo Electron and others posting drops due to reports of tighter US export restrictions.
    • ASML’s shares decreased by 6.5% in morning trade and Tokyo Electron’s shares closed nearly 7.5% lower.
    • Bloomberg reported that the Biden administration is considering a rule to clamp down on companies exporting critical chipmaking equipment to China under the US foreign direct product rule.
    • The US FDPR allows controls on foreign-made products even with minimal American technology involvement, potentially affecting non-US companies.
    • President Joe Biden and Chinese counterpart Xi Jinping are expected to meet at the APEC summit in November.
    • Trump’s comments have raised doubts about US commitment to defend Taiwan if he becomes president and during a potential attack by China.
    • Taiwan Semiconductor Manufacturing Co.’s shares closed down 2.4% on Wednesday.
  • Accuracy
    • ASML’s shares decreased by 6.5% in morning trade and Tokyo Electron’s shares closed nearly 7.5% lower.
    • Bloomberg reported that the Biden administration is considering a rule to clamp down on companies exporting critical chipmaking equipment to China under the US foreign direct product rule.
    • President Joe Biden and Chinese counterpart Xi Jinping are expected to meet at the APEC summit in November.
    • Trump’s comments have raised doubts about US commitment to defend Taiwan if he becomes president and during a potential attack by China.
    • Taiwan Semiconductor Manufacturing Co.’s shares closed down 2.4% on Wednesday.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

91%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Futures Fall, Chips Skid On ASML, China Curbs, Trump

Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Wednesday, 17 July 2024 12:15
  • Unique Points
    • ASML earnings and revenue topped second-quarter EPS and sales estimates, while surging bookings bodes well for long-term growth. However, Q3 revenue guidance was light.
    • ASML stock plunged nearly 8% in premarket trade, set to drop well below a 1,056.34 buy point and undercutting the 50-day line.
    • Taiwan Semiconductor earnings are due early Thursday.
    • In addition to ASML and tougher export curbs, Trump said Taiwan should pay the U.S. for defense, claiming it "doesn't give us anything." That comment, in a Bloomberg Businessweek interview published late Tuesday, raises concerns about whether Trump would defend Taiwan from a China attack if he became president again.
    • Taiwan Semiconductor lost more than 5%.
  • Accuracy
    • Dow Jones futures declined modestly early Wednesday, while S&P 500 futures and especially Nasdaq futures fell sharply as semiconductor-equipment giant ASML (ASML) tumbled on guidance.
    • The Biden administration is mulling its toughest-possible trade restrictions if Dutch-based ASML and others continue to sell advanced chip technology to China, Bloomberg reported.
    • ASML stock plunged nearly 8% in premarket trade, set to drop well below a 1,056.34 buy point and undercutting the 50-day line.
    • Nvidia stock almost 4%, signaling a clear move below its 21-day line and approaching a rising 10-week line.
    • Taiwan Semiconductor (TSM), which makes chips for Nvidia and many others, lost more than 5%.
  • Deception (80%)
    The article contains selective reporting as it only reports details that support the author's position about ASML and Nvidia stocks falling due to export curbs and Trump's comments. However, there is no clear editorializing or emotional manipulation in the article.
    • ASML earnings and revenue topped second-quarter EPS and sales estimates, while surging bookings bodes well for long-term growth.
    • Nvidia stock almost 4%,
  • Fallacies (95%)
    The article contains some instances of inflammatory rhetoric and appeals to authority, but no formal or blatant logical fallacies were found. The author's statements about former President Trump's comments on Taiwan raising concerns about his potential defense of Taiwan if he becomes president again can be considered an appeal to authority as they rely on the reader's assumption that Trump's past actions and statements are indicative of future behavior. However, this is a subtle use of language and does not significantly impact the overall credibility or accuracy of the article. The author also mentions ASML earnings exceeding estimates but then discusses concerns about potential export curbs to China, which could be seen as creating a dichotomous depiction by presenting these two pieces of information without sufficient context. However, this is not a clear-cut fallacy as the author does provide some context and analysis. The article also contains several direct quotes from various sources that are not analyzed or evaluated for logical fallacies.
    • ][The Biden administration] is mulling its toughest-possible trade restrictions if Dutch-based ASML and others continue to sell advanced chip technology to China.[/
    • Trump said Taiwan should pay the U.S. for defense, claiming it ‘doesn’t give us anything.’
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

TSMC second-quarter profit seen jumping 30% on surging AI chip demand

Yahoo Finance Unknown Reuters Wednesday, 17 July 2024 13:09
  • Unique Points
    • TSMC is expected to report a 30% rise in second-quarter profit on Thursday.
    • TSMC has benefited from a surge towards AI that has pushed TSMC’s stock and the broader Taiwan market to record highs.
    • TSMC is spending billions building new factories overseas, including $65 billion on three plants in the US state of Arizona.
  • Accuracy
    • ]TSMC is expected to report a 30% rise in second-quarter profit on Thursday.[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication