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Shares of major semiconductor equipment firms surged following reports that the U.S. is considering less stringent sanctions on China's chip industry. ASML and Tokyo Electron saw significant gains as the U.S. may limit the export blacklist for Chinese firms, potentially softening the impact on ASML's revenue from China. Analysts noted that excluding ChangXin Memory Technologies from the blacklist could lead to a smaller decline in ASML's sales than previously expected.
Samsung Electronics has appointed Jun Young-hyun as co-CEO and head of its memory chip division, while Han Jin-man will lead the foundry business, amid fierce competition in the semiconductor market. Following the announcement, the company's shares dropped 3%, reflecting investor concerns over its competitive position against rivals like SK Hynix. Analysts suggest that the leadership changes aim to stabilize operations while addressing business uncertainties.
Asian semiconductor stocks fell sharply following Nvidia's earnings report, which, despite exceeding expectations, revealed a slowdown in revenue growth. Nvidia's forecast of $37.5 billion for the current quarter, while above analyst predictions, indicates a significant decline from previous growth rates, prompting concerns among investors. Stocks of key suppliers like Advantest and Taiwan Semiconductor Manufacturing Corp also experienced declines, reflecting the broader market sentiment.
Nvidia's CEO Jensen Huang announced that the company will exceed its previous estimates for Blackwell chip sales, driven by strong demand from major clients like Microsoft and OpenAI. Despite facing supply constraints, Nvidia expects to ship more Blackwell chips each quarter, with revenue projections rising significantly. The company anticipates that Blackwell sales will eventually surpass those of its previous generation Hopper chips, marking a pivotal moment in the AI revolution.
Samsung Electronics announced a surprise $7.19 billion stock buyback plan, causing shares to surge over 7% in Seoul. The company will repurchase 3 trillion won worth of shares in the next three months, with the remaining 7 trillion to be authorized by the Board to enhance shareholder value. This move follows a preliminary agreement with its largest workers union and comes after the stock hit a four-year low amid concerns over profit guidance and competition with SK Hynix in the high bandwidth memory market.
Samsung Electronics reported a disappointing operating profit of Won3.9tn ($2.8bn) in its chip division for Q3, significantly below analyst expectations and trailing behind SK Hynix's Won7tn profit. The company has struggled to capitalize on the AI boom and has not yet passed Nvidia’s qualification tests for advanced HBM chips, prompting concerns about its competitiveness and potential executive changes. Despite a recent share price recovery, analysts remain skeptical about Samsung's prospects in the high bandwidth memory market.
UBS maintains a positive outlook on US equities, predicting the S&P 500 will reach 6,600 by the end of 2025, despite recent volatility and rising Treasury yields. The bank expects corporate profits to grow 5-7% in Q3, contributing to an 11% growth for 2024, driven by strong economic resilience and AI demand. UBS anticipates further rate cuts from the Fed, emphasizing the strength of the economy and sectors like IT, utilities, and consumer discretionary.
Investor sentiment has weakened amid rising Treasury yields, with the S&P 500 experiencing its longest losing streak since September. Despite this, a positive outlook for US equities remains, with expectations for the index to reach 6,600 by the end of next year, supported by solid corporate earnings and resilient economic growth. The Federal Reserve is anticipated to implement further rate cuts, while demand for artificial intelligence continues to drive growth in the tech sector.
U.S. stocks fell as rising Treasury yields weighed on the market, with major companies like Apple and Nvidia dropping over 2%. Tesla's shares surged 12% after beating earnings forecasts, while SK Hynix reported a record profit despite slightly missing revenue expectations. Apple is exploring collaborations in China, and analysts suggest European stocks may have significant growth potential despite overall market lag.
US stocks faced a significant downturn, with the Dow Jones Industrial Average experiencing its largest drop in over a month, influenced by rising treasury yields that dampened market sentiment. The S&P 500 and Dow both fell nearly one percent, while the Nasdaq Composite dropped 1.6 percent, marking its worst performance since early September. In contrast, Tesla shares surged after exceeding third-quarter earnings expectations, while IBM's disappointing results weighed heavily on its stock.

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