Why is ASM International stock in the red today?

ASM International’s stock is experiencing a significant drop today, trading as low as €775, down 6.6% from its opening price of €800. The decline is attributed to a broader industry-wide retreat in AI-linked semiconductor stocks following public calls from leaders at OpenAI and Anthropic for a temporary slowdown in advanced AI model development.

ASM International specializes in atomic layer deposition (ALD) equipment, which is crucial for manufacturing advanced logic and memory chips used in AI data centers. Any signs of decelerating AI demand can directly impact ASM’s revenue outlook. Analysts have noted that the company’s stock has broken below its medium-term rising trend channel, a bearish signal that has further fueled selling.

Jefferies has maintained a Sell rating on the shares since early August, and the stock’s technical indicators are signaling a strong sell, amplifying the downward momentum. Peer semiconductor companies BE Semiconductor Industries and ASML Holding have also faced similar pressure in recent sessions, indicating that the move is sector-wide.

Additionally, the broader macro economic environment is not providing much support, with U.S. equities performing poorly, including a 1.5% drop in the NASDAQ, a 0.6% decline in the S&P 500, and a 0.2% fall in the Dow Jones. The broader market sentiment is risk-averse, negatively impacting high-beta technology and semiconductor stocks.

The AEX, Amsterdam’s benchmark index, is also reflecting this global weakness, further amplifying the sector’s pain. Despite these factors, ASM International shares have fallen to their session low of €775, significantly below their 52-week high of €1,092.5, as investors await further fundamental updates expected later in October.