Intel's 21.5% share plunge drags global chip stocks; Nvidia falls 3.5% in premarket trading

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Intel Corp,Earnings,Taiwan Semiconductor Manufacturing Co Ltd

Asian stocks including Samsung and TSMC closed lower as European chip firms including ASML also dropped.

Global semiconductor stocks fell on Friday after a lackluster set of results from U.S. chip firm Intel sent its shares cratering, and a global market sell-off weighed on tech names.

Intel shares fell more than 20% in premarket trade in the U.S. on Friday, after the company reported a big miss on earnings in the June quarter and said that it would lay off over 15% of its employees.Pat Gelsinger, chief executive officer of Intel Corp., speaks during the Computex conference in Taipei, Taiwan, on Monday, June 4, 2024.

A number of major U.S. chip names also fell on Friday in U.S. premarket trade, with Nvidia trading around 3.5% lower at 05:53 a.m. ET. Adding pressure to the stock is a report fromThe DOJ is looking at complaints that the chip giant allegedly abused its market dominance in artificial intelligence chips," The Information reported.— known as TSMC — closed 4.6% lower in Taiwan, and Samsung was also more than 4% lower at the end of the session in South Korea.

Samsung rival SK Hynix, which supplies U.S. giant Nvidia, also fell sharply to close more than 10% lower., which sells key tools required to make cutting-edge chips, were more than 6% lower at around 4:23 a.m. ET, in the Netherlands.and has fed its way through to Asia and Europe. This especially weighed on tech-heavy Nasdaq and on chip stocks.

The VanEck Semiconductor ETF, which includes major names in the sector, closed roughly 6.5% lower in the U.S. on Thursday.

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Intel's 22% share plunge drags down global chip stocks from TSMC to SamsungAsian stocks including Samsung and TSMC closed lower as European chip firms including ASML also dropped.
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