Important points
Semiconductor equipment makers KLA Corporation, Applied Materials and Lam Research suffered some of the steepest losses in the S&P 500 on Tuesday. Raymond James analysts lowered their price targets for all three stocks, raising concerns about near-term demand from China. These stocks were also targeted. The pressure came after ASML gave a weak outlook and reports that the US was considering restricting exports to certain countries.
Shares of semiconductor equipment makers KLA (KLAC), Applied Materials (AMAT) and Lam Research (LRCX) fell among the S&P 500 on Tuesday as analysts expressed concerns about near-term demand from China. recorded the steepest decline.
Stocks were also weighed down by ASML (ASML)’s weak outlook and reports that the US is considering restricting exports to certain countries.
Raymond James lowers price target
Raymond James analysts lowered their price targets for all three stocks, not just ASML (ASML), cutting the world’s second-largest economy’s focus on dynamic random access memory (DRAM), a key data storage component. A slowdown in demand is expected. used in computers.
Lam and Applied Materials shares fell more than 10% on Tuesday, and KLA stock closed down nearly 15%. ASML stock fell more than 16%.
ASML sales warning, export caps could weigh on chip stocks
The loss came as ASML incorrectly released its quarterly results one day earlier than expected, resulting in lower-than-expected net bookings for the period and a lackluster sales outlook for 2025.
Meanwhile, reports that the Biden administration is considering caps on exports to certain countries due to national security concerns have put downward pressure on semiconductor stocks overall.
The PHLX Semiconductor Index (SOX), a closely watched indicator of the chip industry’s performance, fell more than 5% on Tuesday.
