2024-04-17 15:05:27 ET
Wednesday is turning into a bad day to own semiconductor stocks -- and China is the reason. Late last night, the South China Morning Post reported that semiconductor chip output in the Middle Kingdom surged 40% in the first quarter -- more than twice as fast as total global semiconductor sales, according to data from the Semi global semiconductor manufacturers association.
Shares of leading chipmaker Advanced Micro Devices (NASDAQ: AMD) are down 4.5% through 2:10 p.m. ET. Lam Research (NASDAQ: LRCX) and Applied Materials (NASDAQ: AMAT) -- both builders of machines to make semiconductor chips -- are down 4.3% and 4.5%, respectively.
Chinese chipmakers are seeing "soaring" demand for their products from automobile companies ( EVs especially ) and smartphone manufacturers (such as Xiaomi). While slowing sales of EVs and smartphones dominate headlines in the West, the Post says Chinese EV sales grew 29% in Q1, and smartphone sales rose 17% -- and China's building its own chips to supply them.
For further details see:
Why AMD, Applied Materials, and Lam Research Stocks All Tumbled Today