ASML's strong earnings but weak guidance causes 16% stock drop

From Nasdaq: 2024-10-16 13:00:00

Semiconductor stocks slumped after ASML Holding reported strong earnings but weak forward guidance, causing a 16% drop in ASML shares. Nvidia remains a top pick for investors, with strong demand for its new Blackwell chip. Despite the dip, bullish options positioning signals confidence in NVDA.

Arm Holdings and NVDA were due for a retreat after recent gains, but this does not indicate the end of the bullish trend. The options market shows smart money buying calls on the 2x Long NVDA ETF during the dip, indicating a buy-the-dip mentality among investors. ASML’s lackluster earnings report caused semiconductors to decline.

Zacks Investment Research names the #1 semiconductor stock that is set to boom with strong earnings growth and an expanding customer base. The global semiconductor manufacturing industry is projected to explode in the coming years. Intel, Nvidia, ASML, ARM, and Taiwan Semiconductor are all key players to watch in this market.



Read more at Nasdaq: ASML EPS Hits Semis: 5 Reasons to Buy the Dip