Latest news with #ASML
Yahoo
an hour ago
- Business
- Yahoo
Watch These ASML Price Levels as Stock Drops on Uncertain Growth Outlook
Key Takeaways ASML shares tumbled Wednesday after the Dutch semiconductor-equipment maker said that it couldn't guarantee growth in 2026 owing to economic and geopolitical factors, as tariff uncertainty weighs on the company. The stock broke down from a rising wedge pattern on above-average volume in Wednesday's trading session, potentially setting the stage for follow-through selling. Investors should watch key support levels on ASML's chart around $695 and $650, while also monitoring resistance levels near $775 and $ Holding (ASML) shares tumbled Wednesday after the Dutch semiconductor-equipment maker said that it couldn't guarantee growth in 2026 owing to economic and geopolitical factors, as tariff uncertainty weighs on the company. The company's shares had traded mostly sideways leading into its quarterly results after President Trump over the weekend threatened 30% tariffs on EU imports from the start of next month. Although semiconductors are currently exempt from U.S. levies, the president said this week he will probably impose tariffs on chips, along with pharmaceuticals, by Aug. 1, according to reports. ASML shares dropped more than 8% Wednesday to around $754, posting the biggest decline in the Nasdaq 100. The stock has gained 9% since the start of 2025 but has lost nearly 30% of its value over the past 12 months as the company's growth outlook has clouded. Below, we take a closer look at ASML's chart and apply technical analysis to identify price levels worth watching out for. Rising Wedge Breakdown ASML shares broke down from a rising wedge pattern on above-average volume in Wednesday's trading session, potentially setting the stage for follow-through selling. Moreover, the drop coincided with the relative strength index falling below its neutral threshold to confirm accelerating selling momentum. However, in a win for the bulls, the stock closed well above its intraday low, forming a dragonfly doji—a candlestick pattern that can signal a bullish reversal, especially since today's low attracted buying interest near the closely watched 200-day moving average (MA). Let's identify support and resistance levels on ASML's chart that investors will likely be watching. Support Levels to Watch A close below the 200-day MA could see the shares initially test support around $695. This area may attract buying interest near the December and March troughs, which also closely align with the April countertrend peak. Selling below this level could trigger a decline toward $650. Investors may look to accumulate shares in this region near the prominent 2024 low and a range of corresponding trading activity during April. Key Resistance Levels to Monitor The first overhead level to monitor sits around $775. The shares could run into resistance in this area near a horizontal line that connects multiple peaks and troughs on the chart from last August through to this month. Finally, a recovery above this level could propel a rally toward $855. Investors who have bought ASML shares at lower prices may look to lock in profits in this location near a trendline that links a range of price action on the chart from April to October last year. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
Nikkei Asia
an hour ago
- Business
- Nikkei Asia
China's ASML endeavor and India eyes Taiwan ties
Hi everyone, this is Lauly, waving hello from drizzly Tokyo, where I am on a short business trip. It's been a while since I last visited this vibrant city. That was in spring 2023, shortly after the lifting of COVID quarantine controls. We had a company teambuilding event that almost every overseas correspondent attended. We took a dinner cruise on a traditional boat in Tokyo Bay and later sang karaoke. Touching down in Haneda Airport yesterday reminded me how joyful it is to see colleagues that you work closely with despite living far away. I am hosting this week's #TechAsia from Tokyo just as our special visual project about extreme ultraviolet lithography machines, the world's most complicated chipmaking equipment, goes online. The idea for the story actually emerged roughly two years ago from discussion with my colleague Annie Cheng Ting-fang. We decided we should dissect China's efforts to build its own ASML, the Dutch company that is the exclusive maker of EUV machines. However, we were sidetracked by other big projects and major news developments, such as the great nanometer chip race, China's subsea cable drive, Huawei's mission to boost China's tech prowess, not to mention the industrywide earthquake set off by Trump's tariff war since April. Looking back, however, all these projects are linked to one another, and together they build a sweeping tale about China's tech capabilities under the pressure of U.S. restrictions. Our years of accumulated industry knowledge and the latest scoopy details about little-known Chinese players all became part of this latest story. I am very happy that we finally told this story, with massive help from our industry sources and analyst friends, as well as our editors and designers. This is a very good read that I'm sure you will enjoy. Separately, the tech supply chain has been waiting anxiously for the final results of the Trump administration's tariff policy. Without further details, it is impossible for companies to make their next moves. "The clients have not yet told us what to do or made any order adjustments, as there are so many details not yet disclosed," Jeff Lin, CEO of Wistron, a maker of Nvidia servers and HP and Dell notebooks, told reporters this week. "The market for AI servers would be less impacted due to the continued robust demand, but it is hard to say for consumer electronics products like personal computers and notebooks." The last, greatest challenge Ever since Chinese tech champion Huawei was blacklisted by the U.S., China has stepped up efforts to boost its self-sufficiency in tech, particularly in chipmaking equipment, a segment dominated by suppliers from the U.S., the Netherlands and Japan. Semiconductor Manufacturing International Corp., China's top contract chipmaker, is aggressively expanding the output of 14-nanometer and even 7-nm chips in Beijing, with a mission to even build them entirely with Chinese chipmaking equipment, according to this special project by Nikkei Asia's Cheng Ting-Fang and Lauly Li. But while China has made progress in almost every chipmaking machine over the past few years, one daunting challenge remains: lithography. This essential step in the manufacturing process determines the ultimate performance of the chip. The Chinese central government, local governments and top national research institutes are supporting the creation of the country's own supply chain ecosystem for lithography machines, including the development of critical components, optical parts and light sources. Huawei-linked chipmaking equipment supplier SiCarrier, as well as Shanghai Yuliangsheng and Shanghai Micro Electronics Equipment, are among the most eager to see the effort succeed, with the trio's ultimate goal being to build the extreme ultraviolet (EUV) lithography machines. "It could be in five years, it could be in 10 years, it could be in 15 years. We don't really know," said Didier Scemama, head of EMEA IT hardware research at BofA Global Research. "Is that going to be competitive with what ASML does? [That is] highly unlikely. But it's good enough for China." Nvidia's aims for China Nvidia chief Jensen Huang said it would "accelerate the recovery" of its China sales, after a detente between Beijing and Washington allowed the AI chipmaker to resume shipments of a key processor specifically designed for the Chinese market, writes the Financial Times' Eleanor Olcott. Huang told a press conference in the Chinese capital on Wednesday the company had not yet received export licenses from Washington to restart shipments of its H20 product, but he expected them "to come through very shortly." Nvidia had reported a $4.5 billion write-down in its April quarter, as the Trump administration tightened export restrictions on advanced chips and it was left with a huge H20 inventory it could no longer ship. "Some of what we wrote off is hard to recover, but what we put on reserve will not be scrapped permanently," said Huang. The company would make a final decision about whether it needed to restart production of its previous Hopper generation, of which the H20 was part, once customer orders came through, he said. Huang has met President Donald Trump and policymakers this month, as part of intense lobbying in the U.S. and Chinese capitals by the $4 trillion company. He has warned that America risks forfeiting its leadership in AI to Chinese companies, including Huawei, if it cuts off exports of critical technology. Beyond tech ties India, the world's most populous country, is looking to forge deeper economic ties with Taiwan on top of the tech-oriented island's growing manufacturing presence in the South Asian subcontinent, Nikkei Asia's Cheng Ting-Fang and Lauly Li write. The country sent a ministerial-level delegation to Taipei this week to promote the building of an international financial services hub, the Gujarat International Finance Tech-City. Also nown as GIFT City, the project would, among other things, enable flexibility in financing domestic tech projects. "We are here to expand the India-Taiwan business relationship, which is very important in this new world order," said K. Rajaraman, the head of the delegation and chairman of the International Financial Services Centers Authority (IFSCA), the body that is overseeing the hub's development and regulation. "In the Prime Minister [Narendra Modi]'s vision of 2047, one of the most important pillars is technology, and I think Taiwan is the place to be. ... This partnership is completely complementary," Rajaraman said. There are already more than 250 Taiwanese tech suppliers invested in India, and "all" of them are expanding their footprints, making India one of the key beneficiaries of the supply chain diversification amid the U.S.-China tensions. China's food fight China's price war in the food delivery industry continues to spiral out of control, with the three main platforms -- Alibaba Group, Meituan and -- competing head-to-head to become the ultimate gateway for consumer spending in the world's second-largest market, writes Nikkei Asia's Cissy Zhou. The battle, ignited by JD, intensified further over the weekend as platforms announced heavier subsidies to woo users, with Alibaba's Taobao pledging to distribute a limited number of coupons worth up to 188 yuan and Meituan trying to match Taobao's offer. JD offered 100,000 servings of premium crawfish for 16.18 yuan, around $2, each to users across the country. But with the subsidy war lasting longer than expected, it is set to hamper platforms' profits for the second quarter as well as the full fiscal year, analysts warn. Morgan Stanley, for instance, last week lowered its target price for Alibaba's American Depositary Receipts (ADR) to $150 from $180. The bank noted that Alibaba invested approximately 10 billion yuan ($1.4 billion) in food delivery and instant retail services in the April-June quarter, saying the move has put its short-term profitability under pressure. South Korea pushes limits of AI in gaming and entertainment Welcome to the Tech Latest podcast. Hosted by our tech coverage veterans, Katey Creel and Akito Tanaka, every Tuesday we deliver the hottest trends and news from the sector. In this episode, Katey speaks with Seoul correspondent Kim Jaewon about how South Korea is deploying AI in its gaming and entertainment industries. Find us on Apple Podcasts | Spotify | Amazon Music | Voicy | YouTube | YouTube Music Suggested reads 1. Singtel-led group to build 8,900km Asian subsea cable with NEC (Nikkei Asia) 2. US probes imports of drones and critical material in chips and solar panels (FT) 3. How BYD caught up with Tesla in the global EV race (FT) 4. AI will not change humans, says 'Ghost in the Shell' creator (Nikkei Asia) 5. Post Office scandal clouds Fujitsu's AI rally (FT) 6. Panasonic opens second US battery plant in state of Kansas (Nikkei Asia) 7. China approves $35bn Synopsys chip software deal after US eases export curbs (FT) 8. China's top lithium firms trim losses but warn of volatility (Nikkei Asia) 9. US rare-earth refiner bets on chemistry to break China's dominance (Nikkei Asia) 10. China's ecommerce giants battle for instant delivery crown (FT)
1News
2 hours ago
- Business
- 1News
Wall Street rattles as Trump denies he'll fire Federal Reserve boss
US President Donald Trump sent the US stock market on a jagged round trip after saying he had "talked about the concept of firing" the head of the Federal Reserve. Such a move could help Wall Street get the lower interest rates it loves but would also risk a weakened Fed unable to make the unpopular moves needed to keep inflation under control. The S&P 500 was up by 0.3% in late trading after whipping through an earlier drop and subsequent recovery. The Dow Jones Industrial Average was up 207 points, or 0.5%, with roughly an hour remaining in trading, and the Nasdaq composite was adding 0.2% to its own record set the day before. Stocks had been rising modestly in the morning, before news reports saying that Trump was likely to fire Fed Chair Jerome Powell quickly sent the the S&P 500 down by 0.7%. ADVERTISEMENT When later asked directly if he was planning to fire Powell, Trump said, "I don't rule out anything, but I think it's highly unlikely". That helped calm the market, and stocks erased their losses, though Trump added that he could still fire Powell if "he has to leave for fraud". Trump has been criticising a US$2.5 billion (NZ$4.2 billion) renovation project underway of the Fed's headquarters. Federal Reserve Board Chairman Jerome Powell. (Source: Associated Press) Trump's main problem with Powell has been how the Fed has not cut interest rates this year, a move that would have made it easier for US households and businesses to get loans to buy houses, build factories and otherwise boost the economy. Lower interest rates could also help the US government, which is set to borrow and add a lot more to its debt after approving a wide range of tax cuts. Powell, meanwhile, has been insisting that he wants to wait for more data about how Trump's stiff proposed tariffs will affect the economy and inflation before the Fed makes its next move. The Fed has two main jobs: keeping the job market strong while keeping inflation under control. Lowering interest rates would help boost the economy but would also give inflation more fuel when tariffs may be set to push prices for US households higher. A report on Wednesday said inflation at the wholesale level slowed to 2.3% last month, which was better than economists expected. It's an encouraging signal, but it came a day after another report suggested that Trump's tariffs are pushing up the prices US shoppers are paying for toys, apparel and other imported products. Anthony Matesic works on the floor at the New York Stock Exchange in New York. (Source: Associated Press) ADVERTISEMENT Trump's tariffs are making their weight felt across financial markets. ASML, the world's leading supplier of chipmaking gear, warned that it can't guarantee growth next year, after delivering an expected 15% growth in sales for 2025. Conditions still look strong for ASML's customers in the artificial-intelligence business, but chief executive Christophe Fouquet said in a video that "the level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs". Shares that trade in the United States of ASML, which is based in the Netherlands, fell 7.9%. Stocks of several US companies reporting stronger profits for the latest quarter than analysts expected helped offset that. Johnson & Johnson jumped 5.9% after the drug and medical device giant beat analysts' sales and profit targets and raised its full-year forecasts for both. Chief executive Joaquin Duato said it expects "game-changing approvals and submissions" in the second half of 2025 on an array of products, including for lung and bladder cancer. PNC Financial Services Group added 1% following its better-than-expected quarterly report, thanks in part to loan growth despite what chief executive Bill Demchak called "an uncertain macro environment". GrabAGun, an online retailer of firearms and ammunition, swung sharply after combining with Colombier Acquisition Corp. II and taking its spot on the stock market under the ticker symbol "PEW". Donald Trump Jr, the son of President Trump, is joining the company's board. ADVERTISEMENT The stock quickly went from an early gain of 19% to a drop of 31% before moderating its loss to 24.8%, with several halts in trading along the way. In the bond market, the yield on the 10-year U.S. Treasury fell to 4.46% from 4.50% late Tuesday. It had been as low as 4.44% earlier earlier in the day, but it climbed following the reports that Trump was likely to fire Powell. The morning's headlines in 90 seconds, including an Auckland teen seriously ill in Vietnam, Trump slams supporters, and Icelandic volcano prompts evacuations. (Source: 1News) A new Fed chair friendlier to Trump could mean lower short-term interest rates but also the opposite effect on longer-term yields. That's because a less independent Fed would raise worries that it may also let inflation run higher in the future by being slow to raise interest rates. In stock markets abroad, indexes mostly fell amid relatively modest movements. Stocks rose 0.7% in Jakarta after Trump said Tuesday that he plans to charge imports from Indonesia a tariff of 19%, instead of the 32% that he had threatened earlier, after reaching a trade deal. Indonesia's central bank also cut its key interest rate by 0.25 percentage points on Wednesday, to 5.25%. ADVERTISEMENT "We have calculated everything and discussed everything. The most important thing for me is my people, as I must protect the interests of our workers," Indonesian President Prabowo Subianto told reporters, adding that "this is our offer, and we are not able to give more (to the United States)."
Mint
3 hours ago
- Business
- Mint
Japans Nikkei gains on weaker yen; chip shares cheer TSMC earnings
TOKYO, - Japan's Nikkei share average recovered from early losses to end Thursday with solid gains as a weakening yen bolstered sentiment, while chip shares pared declines after Taiwanese chipmaker TSMC posted record earnings. The Japanese currency sank as much as 0.5% against the U.S. dollar, sliding towards Wednesday's 3-1/2-month nadir. A weak currency boosts the value of overseas revenues for heavyweight exporters. Meanwhile, TSMC reported results that topped analyst forecasts during the Tokyo Stock Exchange's afternoon session. It undid some of the pessimism from Dutch chip-making tool supplier ASML's revenue warning, which had weighed on Japanese chip shares in the morning. The tech-heavy Nikkei ended the day up 0.6% at 39,901.19, reversing earlier declines of as much as 0.7%. The broader Topix rose 0.7%. Silicon producer Sumco was the Nikkei's biggest percentage gainer with a 7% jump. AI-focused start-up investor SoftBank Group was the biggest support in index-point terms with a 2.3% increase. Heavily weighted chip-testing machinery maker Advantest was the Nikkei's biggest drag after dropping 0.8%. Chip-making equipment manufacturer Lasertec was another standout loser, with a 4.8% tumble. ASML warned on Wednesday that it may not achieve revenue growth in 2026 as chipmakers building factories in the U.S. await clarity on the potential impact of tariffs. For Japanese peers, "quarterly orders are likely to fluctuate but, based on the 12-month moving average, orders have not yet entered a recovery phase, similar to ASML," Jefferies analysts wrote in a research note on Wednesday. Orders for extreme ultraviolet lithography equipment, a key component in chipmaking, have been "stalled" since increasing "sharply" in the first half of last year, although a recovery is likely in 2026, they said. The Nikkei's biggest decliner in percentage terms was Seven & i Holdings, which slumped 9.2% after Canada's Alimentation Couche-Tard ended its takeover bid for the operator of the 7-Eleven convenience store chain. The worst performer among the 33 Topix industry groupings was the mining sub-index, which includes oil explorers, which sank 1.0% with Brent oil languishing below $70 a barrel this week. The oil and coal sub-index lost 0.8%. This article was generated from an automated news agency feed without modifications to text.
Economic Times
3 hours ago
- Business
- Economic Times
Japan's Nikkei gains on weaker yen; chip shares cheer TSMC earnings
Japan's Nikkei share average recovered from early losses to end Thursday with solid gains as a weakening yen bolstered sentiment, while chip shares pared declines after Taiwanese chipmaker TSMC posted record earnings. ADVERTISEMENT The Japanese currency sank as much as 0.5% against the U.S. dollar, sliding towards Wednesday's 3-1/2-month nadir. A weak currency boosts the value of overseas revenues for heavyweight exporters. Meanwhile, TSMC reported results that topped analyst forecasts during the Tokyo Stock Exchange's afternoon session. It undid some of the pessimism from Dutch chip-making tool supplier ASML's revenue warning, which had weighed on Japanese chip shares in the morning. The tech-heavy Nikkei ended the day up 0.6% at 39,901.19, reversing earlier declines of as much as 0.7%. The broader Topix rose 0.7%. Silicon producer Sumco was the Nikkei's biggest percentage gainer with a 7% jump. AI-focused start-up investor SoftBank Group was the biggest support in index-point terms with a 2.3% increase. ADVERTISEMENT Heavily weighted chip-testing machinery maker Advantest was the Nikkei's biggest drag after dropping 0.8%. Chip-making equipment manufacturer Lasertec was another standout loser, with a 4.8% tumble. ASML warned on Wednesday that it may not achieve revenue growth in 2026 as chipmakers building factories in the U.S. await clarity on the potential impact of tariffs. ADVERTISEMENT For Japanese peers, "quarterly orders are likely to fluctuate but, based on the 12-month moving average, orders have not yet entered a recovery phase, similar to ASML," Jefferies analysts wrote in a research note on Wednesday. Orders for extreme ultraviolet lithography equipment, a key component in chipmaking, have been "stalled" since increasing "sharply" in the first half of last year, although a recovery is likely in 2026, they said. ADVERTISEMENT The Nikkei's biggest decliner in percentage terms was Seven & i Holdings, which slumped 9.2% after Canada's Alimentation Couche-Tard ended its takeover bid for the operator of the 7-Eleven convenience store chain. The worst performer among the 33 Topix industry groupings was the mining sub-index, which includes oil explorers, which sank 1.0% with Brent oil languishing below $70 a barrel this week. The oil and coal sub-index lost 0.8%. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
