Reported about 1 month ago
ASML's recent downgrade of its 2025 sales expectations has caused panic among chip investors, leading to a significant drop in chip stock prices. However, analysts suggest that this might reflect overcapacity in chip factories rather than a decline in chip demand. Chipmakers had previously ramped up production capacity during the pandemic but have now paused new orders from ASML as they work through existing stockpiles. Although AI chip demand remains strong, many producers are delaying expansions and new investments due to current efficiencies and market conditions.
Source: YAHOO