Sandisk, ASML, and More Chip Stocks Tumble as China Plays Disruptor
Shares of Sandisk, ASML Holding, and other chip stocks reversed sharply lower Monday as a massive Chinese initial public offering hit the market and a report emerged that a state-backed Chinese company has started mass producing chip-making machines.Sandisk dropped 11%, placing it the worst performer in the S&P 500. Western Digital fell 8%. Chips and networking company Marvell declined 4.2% and Advanced Micro Devices fell 7.3%.Intel and Super Micro Computer booked losses of 3.7% and 3.3%, respectively.Chip stocks and memory names already were under pressure after Chinese memory chip maker ChangXin Memory Technologies surged 466% on its trading debut in Shanghai on Monday, giving it a market capitalization of $484 billion.However, the declines deepened after Bloomberg reported that a Chinese company has begun producing immersion deep ultraviolet lithography machines, which are a key type of machinery used in making chips.ASML, which manufactures the machines, declined 6.2%.This is brea
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