U.S. stock market update: STMicroelectronics NV falls 14.60%, stock price plummets due to Q3 guidance falling short of expectations

U.S. Stock Market Midday Update

STMicroelectronics fell 14.60%. Based on recent key news:

1. On July 23, STMicroelectronics announced its second-quarter financial report. Although revenue slightly exceeded market expectations, the third-quarter revenue guidance fell short of analyst expectations, leading to a significant drop in stock price. The company expects third-quarter revenue of approximately $3.7 billion, below the market expectation of $3.9 billion, with a gross margin of about 37%, slightly above the analyst expectation of 36.76%. Source: Titanium Media

2. On July 23, STMicroelectronics' stock price plummeted over 15% in the Milan market, reflecting market disappointment in its growth expectations. Despite the company raising its revenue target for the data center business, the stock price has already reflected growth expectations and may face pressure in the short term. Source: Citigroup Analyst Report

3. On July 23, the power management chip supply agreement signed by STMicroelectronics with Amazon AWS shows strong growth in AI business, but traditional businesses still face pressure. The company is actively shifting towards high-growth areas such as AI data centers to reduce reliance on the automotive and consumer electronics markets. Source: Viewpoint Network News

Stocks with High Trading Volume in the Industry

Micron Technology rose 3.91%. Based on recent key news:

1. On July 21, Morgan Stanley analysts pointed out that the memory shortage caused by data center demand has allowed manufacturers to significantly raise prices, with expectations that prices will soar at least 25% in the third quarter. This news drove Micron's stock price up. Source: MarketWatch

2. On July 22, Bank of America analysts raised Micron Technology's target price to $155.00 and issued an optimistic outlook, believing that AI storage demand will drive industry growth. This move boosted market confidence. Source: Financial News Overseas

3. On July 23, Tesla CEO Elon Musk revealed that Micron Technology provided a large number of storage chips to Tesla, meeting the tight demand and driving the stock price up. Source: Zhitong Finance APPAI demand drives tightness in the storage chip market.

NVIDIA fell 1.64%. Based on recent key news:

1. On July 20, NVIDIA was accused of paying high prices to competitor Groq for technology, indicating that its moat partially relies on external technology, raising market concerns about its long-term competitiveness. This news triggered stock price fluctuations. Source: Zhitong Finance.

2. On July 21, NVIDIA disclosed a 9.3% stake in Nebius, driving Nebius' stock price up, and the market expressed concern over NVIDIA's investment strategy in the AI field. Source: Zhitong Finance.

3. On July 22, Wistron announced the activation of a new facility in the U.S. to produce NVIDIA AI servers, expanding NVIDIA's business footprint in the U.S. and boosting market confidence. Source: Zhitong Finance. Competition in the AI industry is intensifying, with significant capital inflow.

AMD fell 0.30%, with increased trading volume. Based on recent key news:

1. On July 22, AMD signed a multi-billion dollar AI server cooperation agreement with Anthropic, leading to a 4% pre-market decline in stock price The agreement includes AMD investing up to $5 billion in Anthropic, with high market expectations for the scale of cooperation. Source: Guandian.com

2. On July 23, Guangfa Securities reported that AMD is about to release the MI450X, narrowing the hardware gap with NVIDIA, with a target price raised to $640. The market expects the scale of cooperation to surpass that of Meta and OpenAI. Source: Zhitong Finance

3. On July 22, AMD announced an expanded partnership with Microsoft Azure to deploy Helios rack-level solutions to support AI inference. This move is seen as an important step for AMD to challenge NVIDIA in the AI chip field. Source: Zhitong Finance The technology sector is weakening, affecting chip stocks' performance.

Stocks ranked at the top of the industry by market capitalization

TSMC fell 0.64%. Based on recent news,

1. On July 20, TSMC announced an additional investment of $100 billion in Arizona, USA, to meet customer demand and respond to competitor challenges. This move raised market concerns about the company's increased capital expenditure, leading to a decline in stock price.

2. On July 20, TSMC released its second-quarter financial report, and although revenue and profit exceeded expectations, the market expressed concerns about its future profitability and order fulfillment capability, putting pressure on the stock price.

3. On July 21, concerns about the semiconductor industry cycle peaking intensified, leading to fluctuations in TSMC's stock price. Analysts pointed out that TSMC's high dependence on high-performance computing customers poses risks when AI infrastructure spending cools down. The semiconductor industry faces cyclical volatility risks, and investment should be cautious