What Happened?
A number of stocks fell in the morning session after a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike.
The negative sentiment was triggered after the Dutch firm, whose complex machines are essential for producing advanced chips, warned it could no longer guarantee growth in 2026. ASML's management cited "increasing uncertainty driven by macro-economic and geopolitical developments," including the potential for new U.S. tariffs.
As an industry bellwether, a company whose performance is seen as an indicator of the entire sector's health, ASML's comments are a key signal of future capital spending. The warning sent a chill through the market, as concerns grow that trade tensions could disrupt the highly globalized semiconductor supply chain and slow down investment from chip manufacturers.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Semiconductor Manufacturing company KLA Corporation (NASDAQ: KLAC) fell 3.4%. Is now the time to buy KLA Corporation? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Marvell Technology (NASDAQ: MRVL) fell 4.3%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Memory Semiconductors company Micron (NASDAQ: MU) fell 3.2%. Is now the time to buy Micron? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Nova (NASDAQ: NVMI) fell 3.4%. Is now the time to buy Nova? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company FormFactor (NASDAQ: FORM) fell 3.1%. Is now the time to buy FormFactor? Access our full analysis report here, it’s free.
Zooming In On Marvell Technology (MRVL)
Marvell Technology’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 4.1% on the news that the major indices pulled back (Nasdaq -0.8%, S&P 500 -0.77%), largely due to escalating concerns surrounding the July 9th deadline for new US tariffs, now amplified by specific announcements.
Earlier in the day, President Trump confirmed that Japan and South Korea would face new 25% tariffs on their imports to the US, effective August 1st. These announcements came ahead of the broader July 9th expiration of a 90-day pause on reciprocal tariffs, which failed to produce comprehensive trade deals with most nations. This action against two major trading partners, coupled with the ongoing threat of further tariffs on countries associated with the BRICS bloc, injected significant uncertainty and apprehension into global markets. Investors were likely reacting to the increased costs for businesses, potential disruptions to global supply chains, and the broader implications for international trade relations.
Marvell Technology is down 39.5% since the beginning of the year, and at $68.70 per share, it is trading 45.5% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $1,878.
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