Motley Fool Money Chip Outlook Gets Cloudier
Oct 16, 2024
Jason Moser, an expert in semiconductors and pharmaceuticals, joins Brian Orelli, who specializes in personalized medicine and 23andMe analysis. They dive into ASML's disappointing earnings and the challenges facing the semiconductor supply chain amidst rising AI demand. Then, they unravel the steep decline of 23andMe's valuation, exploring its journey from a $6 billion company to penny stock and the obstacles hindering profitability. The discussion includes insights into drug development and strategic shifts in a rapidly evolving industry.
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ASML's Position in the Semiconductor Landscape
- ASML plays a crucial role in the semiconductor supply chain, making machines that produce chips.
- Their unique extreme ultraviolet lithography (EUV) machines are essential for high-end chips, giving them a significant competitive edge.
ASML's Q2 Performance and Market Challenges
- Despite increased revenue and earnings, ASML's net bookings were below analyst estimates, causing concern.
- This reflects broader market challenges, including cautious spending by major customers like Intel and Samsung.
Factors Affecting ASML's Bookings
- ASML's lower order intake reflects a slow recovery in traditional end markets and cautious customer spending.
- US export restrictions to China, a significant portion of ASML's revenue, add to these challenges.