A number of stocks fell in the morning session after a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Semiconductors are the core infrastructure powering the Information Age. Demand for chips is variable though, meaning that corporate inventory levels and sentiment can significantly impact the industry.
The market doesn’t seem convinced we’re due for another upturn as the sector’s 3.1% gain over the past six months has trailed the S&P 500 by 2 percentage points.
Congress bought and sold stocks in May, raising no red flags but highlighting opportunities in the tech sector, including critical semiconductor companies.
Texas Instruments plans to invest $60 billion to expand U.S. chip manufacturing, creating 60,000 jobs. Apple, Ford, Medtronic, NVIDIA, and SpaceX support the initiative.
The company said its seven factories will span three manufacturing mega-sites and manufacture “hundreds of millions” of U.S.-made chips daily, while creating over 60,000 new U.S. jobs.
