The lower the AI exposure, the bigger the problem for Europe's chip firms
semiconductor firms less exposed to AI chips slumped on Thursday as falling demand from their key automotive and industrial clients hit business prospects, on top of a wider sector correction.
#Budget 2024 with ET
Budget Highlights: Your 2-minute guide
Tax tweaks, jobs & more: All that FM announced in Budget
FM 's plan for Viksit Bharat: A look at key numbers
Chip component suppliers like ASML and ASM International are more exposed to the booming AI chip market and demand from high-end tech clients like Nvidia, TSMC, and Intel.
Elevate Your Tech Prowess with High-Value Skill Courses
Offering CollegeCourseWebsiteIIT DelhiCertificate Programme in Data Science & Machine LearningVisitIndian School of BusinessProfessional Certificate in Product ManagementVisitMIT xPROMIT Technology Leadership and InnovationVisit «The more high-end applications, linked to AI, those are doing much better,» said ING analyst Marc Hesselink.
But even they aren't immune to a «correction» in stock valuations after strong rallies this year, coupled with worries around the impact of trade spats involving China, the U.S. and Europe, Hesselink added.
Shares in both ASML and ASMI were down about 3% in early afternoon trading.
Companies with less AI exposure meanwhile were hit harder by industrial clients and automakers cutting orders. Demand for electric vehicles has slowed sharply in Europe.
STMicroelectronics, which supplies Tesla, tumbled 14% after it cut 2024 sales and margin targets for a second time this year, as orders from industrial
