AEX-index Plummets As Chip Sector Sell-off Hits Amsterdam
The AEX-index on the Damrak opened Thursday with a sharp decline of 1 percent to 1124.94 points, driven by a global sell-off in chip stocks that swept across Wall Street and Asian markets. Investors are questioning whether the massive stock gains fueled by artificial intelligence demand are sustainable, while renewed inflation fears in the United States spark concerns over higher corporate borrowing costs. Broadcom CEO Hock Tan stated that a lack of funding poses a bigger challenge for the further rollout of artificial intelligence than shortages of chips or electricity, while the CEO of Intel also issued warnings that same day.
Global Tech Slump Triggers European Market Losses
The downturn mirrors sharp losses on US exchanges on Wednesday and Asian markets on Thursday. High-flying technology companies faced heavy selling pressure amid growing skepticism over whether artificial intelligence firms can meet lofty revenue and profit expectations. In the United States, datacenter operator CoreWeave saw its shares drop 15.5 percent amid mounting anxieties over whether the firm can service its heavy debt load. Meanwhile, revenue figures from AI developers OpenAI and Anthropic have revealed moderate growth rates, intensifying unease among investors. Tech stocks are dragging the stock index as a whole down. ASML accounts for approximately 16 percent of the entire index, so a falling share price has an immediate and major impact on the overall AEX index. The index, which reached record highs in the euro era again in recent weeks, is down about 1 percent. Tech stocks are also under pressure elsewhere in Europe: the broad Stoxx 600, a collection of 600 European stocks, is turning red.
BREAKING: TSMC reported third-quarter net profit of NT$763.1 billion, up 68.7% from a year earlier.TSMC’s third-quarter operating margin came in at 58.7%, exceeding the guidance of 58%The company’s free cash flow surged to NT$476.56 billion, from NT$139.38 billion a year ago
ASMI, BESI, and ASML Lead Damrak Decliners
Amsterdam’s heavyweight chip equipment manufacturers bore the brunt of the local sell-off. Rond 11 uur in de ochtend staan ASMI (-9 procent), BESI (-6 procent) en ASML (-5 procent) fors in het rood. Because ASML accounts for approximately 16 percent of the entire AEX-index, its downward trajectory heavily dragged down the broader Dutch benchmark. Broader European technology stocks also suffered, pushing the Stoxx 600 index into negative territory.
TSMC Third-Quarter Results
Amid the wider sector retreat, TSMC released third-quarter financial results. De omzet van $46,6 miljard was 1,4% beter dan verwacht. The company is examining a potential investment in Texas to further strengthen its production activities in the United States. This would make the company less dependent on its facilities in Taiwan. Given the tensions with China, this is a sensible move.
73% of the companies in the S&P 500 in 1996 are no longer in the index.That's capitalism in action.Creative destruction. Constant disruption. No company stays on top forever. pic.twitter.com/KmD2zChtUn
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