Chip Industry Faces Divergent Fortunes Amid AI Boom

ASML's market value plummets while TSMC thrives on AI demand, reflecting a growing divide in semiconductor sector dynamics.

ASML's shares dropped over 20%, losing $97 billion in market value due to weaker-than-expected orders and revised revenue forecasts.
TSMC reported a record quarterly profit, driven by strong demand for AI chips, leading to a nearly 10% increase in its share price.
ASML's slower growth is attributed to conservative adoption of its new lithography systems and export restrictions to China.
TSMC benefits from its focus on AI and high-performance computing markets, insulating it from geopolitical tensions affecting other chipmakers.
The geopolitical landscape, including US-China tensions, continues to impact chipmakers, with potential risks even for leading AI players.