Asia chip stocks fall tracking ASML losses; TSMC earnings on tap

Asian chipmaking stocks fell on Wednesday after industry bellwether ASML provided a weak sales forecast for 2025, with focus now turning to upcoming earnings from Taiwan’s TSMC. 

Japanese chip stocks were the worst performers, with Lasertec Corp (TYO:6920 ), Tokyo Electron Ltd. (TYO:8035 ) and Dainippon Screen Mfg. Co., Ltd. (TYO:7735 ) falling between 9% and 14%. 

In South Korea, memory chip giants SK Hynix Inc (KS:000660 ) and Samsung Electronics Co Ltd (KS:005930 ) fell 0.7% and 1.6%, respectively.

Losses in Asian stocks came tracking an over 16% slide in ASML's (AS:ASML ) (NASDAQ:ASML ) U.S. shares on Tuesday, after the photolithography equipment maker posted a weaker-than-expected sales outlook for 2025.

While the firm’s September quarter earnings still beat expectations on strong demand from artificial intelligence, ASML said that demand from sectors outside AI was weakening, and was likely to weigh on overall sales. 

The company is the only major supplier of advanced chipmaking equipment in the world, and acts as a bellwether for the broader industry. ASML’s outlook saw market darling NVIDIA Corporation (NASDAQ:NVDA ) sink more than 4%.

Chip stocks were also pressured by a report that the U.S. was planning to impose a limit on the sale of AI chips to select countries, specifically in the Gulf and Middle East.  TSMC earnings set to provide more cues 

Focus was now squarely on TSMC’s (TW:2330 ) (NYSE:TSM ) third-quarter earnings report, due on Thursday.

The world’s biggest contract chipmaker is expected to clock a 40% jump in its quarterly profit, a Reuters survey showed, citing strong demand for chips used in AI applications.

But while TSMC has benefited from increased AI demand over the past year, the chipmaker has also warned that demand from applications outside AI may prove to be weak.

Still, monthly figures showed TSMC clocked third-quarter revenue of T$759.69 billion ($23.62 billion), higher than Reuters estimates of T$750.36 billion. 

TSMC’s Taipei shares fell about 1%, tracking losses in their regional peers. 

Source: Investing.com