The European chip equipment maker ASML has raised its sales forecast. The company expects net sales to reach as much as 45 billion euros, with a gross margin of 54%, exceeding previous forecasts:
On ASML's valuation, Javier Correonero, a senior equity analyst at Morningstar, stated that "expectations for the stock could be too high" in the medium term:
However, it was a different story for other AI-related stocks. IBM's stock cratered 25% on Tuesday, marking its worst day on record as preliminary second-quarter results fell short of expectations:
Meanwhile, South Korea's SK Hynix has bounced back during the Asian trading day, leading a broad rally across the sector:
Despite the rebound, some investors warned that enthusiasm around AI-linked hardware stocks may be overstretched:
Oil Prices
Oil prices remain elevated as U.S. forces carried out another round of strikes against Tehran, and Washington reinstated its naval blockade of Iranian ports:
China's Economic Growth Slows
China's GDP growth has slowed to its lowest pace in over three years, coming in at 4.3%, short of the 4.5% forecast:
