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Intel’s 22% drop drags down global chip stocks from TSMC to Samsung – NBC New York

Posted on by darion

  • Shares of global semiconductor makers fell Friday after weak results from U.S. chipmaker Intel sent its shares tumbling. A global sell-off also weighed on technology stocks.
  • Intel shares fell more than 20% in U.S. premarket trading on Friday after the company reported a large loss on second-quarter profit and said it would lay off more than 15% of its workforce.
  • Asian companies such as Samsung and TSMC closed lower, while European chipmakers such as ASML also lost ground.

Shares of global semiconductor makers fell Friday after weak results from U.S. chipmaker Intel sent its shares tumbling. A global sell-off also weighed on technology stocks.

Intel shares fell 21.51% as of 4:37 a.m. ET on Friday during the U.S. premarket session, after the company reported a large loss on earnings in the June quarter 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. — known as TSMC — closed down 4.6% in Taiwan, while Samsung also closed down more than 4% in South Korea. TSMC is the world’s largest chipmaker, while Samsung is the world’s largest memory semiconductor company.

Samsung’s competitor, SK Hynix, which is a supplier to the American giant Nvidia, also closed the session in the red, exceeding 10%.

The sell-off continued in Europe. Shares of ASML, which sells key tools needed to make cutting-edge chips, were down more than 6% at about 4:23 a.m. ET in the Netherlands. ASMI, which also trades in the Netherlands, was down 9%. STMicroelectronics and Infineon fell.

Intel’s results add to the mixed picture in the semiconductor sector, where companies like AMD and Nvidia continue to thrive on the AI ​​boom. Other players like Qualcomm and Arm have yet to reap the benefits of the technology in their financial results.

Adding to the pressure on chip stocks is a global sell-off that began in the U.S. and spread to Asia and Europe. That has weighed particularly heavily on the tech-heavy Nasdaq and chip stocks.

The VanEck Semiconductor ETF, which includes the largest companies in this sector, ended Thursday’s session on the US stock exchange down about 6.5%.

Prices of several major US chips also fell in US pre-market trading on Friday, with shares of Nvidia down about 3%.