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CNBC's "Fast Money"

Chips Trade At Its Peak?... And UnitedHealth Drops After Earnings 10/15/24

Oct 15, 2024
Dan Niles, founder and portfolio manager of Niles Investment Management, discusses the recent downturn in chip stocks, particularly ASML’s warning about weak sales in China. He examines if the semiconductor surge has peaked and where potential investment opportunities might lie. Sarah James, Managing Director at Cantor Fitzgerald, analyzes UnitedHealth's troubling earnings report, emphasizing rising medical costs and its worst day since the pandemic, sparking discussions about future strategies in the healthcare sector.
43:52

Podcast summary created with Snipd AI

Quick takeaways

  • The significant drop in ASML's bookings by over 50% raises concerns about a potential peak in the semiconductor industry's robust growth.
  • Despite a downturn in semiconductor bookings, the AI sector continues to show promise, indicating a divergence in market recovery dynamics.

Deep dives

Impact of ASML's Booking Decline on Semiconductor Stocks

The significant drop in ASML's bookings by over 50% has sent shockwaves throughout the semiconductor industry, leading to a drastic decline in shares of related companies. ASML's weak sales forecast for fiscal 2025 led to a 16% plunge in its stock, marking its worst single-day drop in four years. This downturn isn't isolated, as it negatively impacted major players like KLA, Applied Materials, and NVIDIA, each experiencing substantial declines. The warning signals raise questions about oversupply and sustainability within the semiconductor market, suggesting a potential peak in the red-hot chip trade.

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