Stocks to Watch Today: NVDA, ASML, and SCHW
In today’s market, three major stocks are making headlines: Nvidia (NASDAQ: NVDA) faces potential U.S. restrictions on AI chip exports, ASML Holding (NASDAQ: ASML) warned of a slower-than-expected semiconductor market recovery, and Charles Schwab (NYSE: SCHW) reported strong Q3 earnings, each driving significant movements in their respective stock prices.
Nvidia (NVDA) Could Face Export Restrictions on AI Chips
Nvidia’s stock is facing pressure as reports emerge of potential U.S. government restrictions on AI chip exports. As of 11:52 AM EDT, NVDA shares were trading at $131.00, down 5.12% for the day. With a market capitalization of $3.213 trillion, the company has seen its stock soar 164.57% year-to-date and 188.22% over the past year.
U.S. officials are reportedly considering limiting sales of advanced AI chips from Nvidia and other American companies to certain countries, with a focus on Persian Gulf nations.
This move, aimed at addressing national security concerns, follows last year’s expansion of licensing requirements for advanced chip exports to over 40 countries. Despite these challenges, Nvidia maintains a strong buy recommendation from analysts, reflecting confidence in its long-term prospects in the AI market.
ASML Holding (ASML) Warns of Slower-Than-Expected Recovery in the Semiconductor Market
ASML Holding saw its shares plummet by 15.45% to $737.51 following an unexpected early release of its Q3 financial results. The Dutch semiconductor equipment manufacturer warned of a slower-than-expected recovery in the semiconductor market, causing ripple effects across the tech sector.
CEO Christophe Fouquet noted that while AI developments show strong potential, other market segments are taking longer to recover. This cautious outlook is expected to persist into 2025, leading to increased customer hesitancy.
The news not only affected ASML but also impacted other semiconductor-related companies, with Nvidia and AMD (NASDAQ: AMD) falling around 5%, Broadcom (NASDAQ: AVGO) down 4%, and Arm (NASDAQ: ARM) 7% lower. Despite the current setback, ASML’s stock still shows a 23.99% gain over the past year.
Charles Schwab (SCHW) Reports Strong Q3 Earnings, Stock Gains
In contrast to the tech sector’s struggles, Charles Schwab reported strong Q3 earnings, sending its stock up 8.30% to $73.45. The financial services giant beat analyst expectations with revenue rising 5% to $4.85 billion and adjusted EPS holding steady at $0.77.
Schwab’s total client assets reached a record high of $9.92 trillion, representing a 27% year-over-year increase. The company also reported significant growth in its Managed Investing net flows, which reached $40 billion, a 65% increase compared to the same period in 2023.
These positive developments have contributed to Schwab’s 45.36% stock price increase over the past year, with the stock up by over 8% at the time of writing.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices quoted at 11:52 AM EDT.
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