(Bloomberg) — Investors in chip stocks are facing a fresh gut check after a tepid outlook from key equipment supplier ASML Holding (ASML, ASML.AS) NV sparked a global rout in the sector.
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Combined market value losses for an index of US-traded chipmakers plus the largest Asian stocks reached more than $420 billion. Shares in ASML extended losses on Wednesday, falling 5.0%.
The warning from Netherlands-based ASML halted a rally that had pushed a gauge of US-traded shares to a three-month high. Nvidia Corp. (NVDA) sank nearly 5% on Tuesday, after reaching a record close earlier this week on reduced concern over production issues with its newest artificial intelligence product.
ASML’s shares tumbled by the most since 1998 in Europe after the manufacturer of the world’s most advanced chipmaking machines cut its outlook on sluggishness in areas beyond AI. It…
