Apple, Moderna, and Tesla Make Headlines in the Stock Market
Apple’s stock has been downgraded due to signs of weakness in iPhone sales. This news comes as Moderna receives an upgrade, and Tesla reports impressive fourth-quarter deliveries, beating Wall Street estimates.
In other news, semiconductor equipment maker ASML Holding NV (ASML) is facing challenges as President Biden has requested the company to halt chip shipments to China. This move could potentially compromise 50% of the company’s business sales. This development raises concerns about the impact of geopolitical tensions on global computer chip distributors.
According to Bloomberg, President Biden’s request for ASML to cancel shipments to China comes ahead of new Dutch restrictions set to take effect. This raises questions about the extent to which other European countries will follow suit and impose similar restrictions. ASML’s CEO has previously stated that up to 15% of the company’s revenues could be impacted by regulatory requests and changes.
The semiconductor industry faced a decline in 2020, with a 12% drop in revenue. This was mainly due to a decrease in sales of personal computers and smartphones, which also affected the demand for semiconductor manufacturing equipment. As foundries and chipmakers focused on reducing their inventories, orders for new equipment decreased.
The stock market has been buzzing with news of Apple’s downgrade, Moderna’s upgrade, and Tesla’s impressive deliveries. The industry as a whole has faced challenges, with the decline in sales of personal computers and smartphones impacting the demand for semiconductor equipment.
