Global semiconductor stocks fell Friday after a lackluster set of results from U.S. chip firm Intel sent its shares cratering, and a global market sell-off weighed on some of the biggest names in the tech sector.<\/p>\n
Intel\u00a0shares fell 28% in morning trading on Friday, after the company\u00a0reported a big miss on earnings in the June quarter\u00a0and said it\u00a0would lay off more than 15% of its employees as part of a $10 billion cost-reduction plan.<\/p>\n
A number of major U.S. chip names also dropped on Friday in U.S. premarket trade, with\u00a0Nvidia\u00a0trading around 4% lower. Adding pressure to the stock is a report from\u00a0The Information\u00a0that Nvidia is the subject of a U.S. Department of Justice antitrust investigation.<\/p>\n
The DOJ is looking at complaints that the chip giant allegedly abused its market dominance in artificial intelligence chips, The Information reported.<\/p>\n
In response, a spokesperson for Nvidia said that the company \u201cwins on merit.\u201d<\/p>\n
\u201cWe compete based on decades of investment and innovation, scrupulously adhering to all laws, making NVIDIA openly available in every cloud and on-prem for every enterprise, and ensuring that customers can choose whatever solution is best for them,\u201d the spokesperson said.<\/p>\n
The spokesperson added that Nvidia is \u201chappy to provide any information regulators need.\u201d<\/p>\n
CNBC has also reached out to the DOJ on the report.<\/p>\n
In Asia,\u00a0Taiwan Semiconductor Manufacturing Co.\u00a0\u2014 known as TSMC \u2014 closed 4.6% lower in Taiwan, and Samsung was down more than 4% at the end of the session in South Korea. TSMC is the world\u2019s biggest manufacturer of chips, while Samsung is the\u00a0largest memory semiconductor firm globally.<\/p>\n
Samsung rival SK Hynix, which supplies U.S. giant Nvidia, also fell sharply to close more than 10% lower.<\/p>\n
The sell-off continued in Europe. Shares of\u00a0ASML, which sells key tools required to make cutting-edge chips, were more than 8% lower by midafternoon in the Netherlands.\u00a0ASMI, which also trades in the Netherlands, was off by 9%.\u00a0STMicroelectronics\u00a0and\u00a0Infineon\u00a0were both down.<\/p>\n
Intel\u2019s results add to the mixed picture across the semiconductor sector, where companies like\u00a0AMD\u00a0and\u00a0Nvidia\u00a0continue to prosper from the boom in artificial intelligence. Other players, like\u00a0Qualcomm\u00a0and Arm, are\u00a0not yet reaping the benefits of the technology in their financial results.<\/p>\n
Adding to the pressure on chip stocks is a\u00a0global equity sell-off that began in the U.S.\u00a0and has fed its way through to Asia and Europe. This especially weighed on the tech-heavy Nasdaq and on chip stocks.<\/p>\n
The VanEck Semiconductor ETF, which includes major names in the sector, closed roughly 6.5% lower in the U.S. on Thursday.<\/p>\n<\/p>\n
Global semiconductor stocks fell Friday after a lackluster set of results from U.S. chip firm Intel sent its shares cratering, and a global market sell-off weighed on some of the biggest names in the tech sector. Intel\u00a0shares fell 28% in morning trading on Friday, after the company\u00a0reported a big miss on earnings in the June […]<\/p>\n","protected":false},"author":0,"featured_media":7223,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-7222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=7222"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/7222\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/7223"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=7222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=7222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=7222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}