Missed out on the northern lights? Scientists expect more solar storms to produce auroras
US fines Lufthansa $4 million for treatment of Orthodox Jewish passengers on a 2022 flight
Frontier pilots vote to authorize strike
FEMA resumes door-to-door visits in North Carolina after threats connected to disinformation
Troubled Boeing signals it may raise up to $25 billion to shore up finances
Bills boost patchwork receiver group by acquiring Amari Cooper in trade with Browns, AP source says
The Super Bowl will return to Atlanta's Mercedes-Benz Stadium in 2028
Sean Baker's improvised road to 'Anora'
(Reuters) - U.S. semiconductor stocks fell on Tuesday after chip equipment maker ASML cut its annual sales forecast and a report said the Biden administration was considering capping sales of advanced artificial intelligence processors to some countries.
AI chip giant Nvidia fell 4.4%, retreating from a record high hit in the previous session that had put it on the brink of dethroning Apple as the world's most valuable company.
Tuesday's drop was set to reduce the AI chip major's market capitalization by about $138 billion to $3.25 trillion, widening the gap with Apple's value of $3.58 trillion.
Other chip firms, including AMD, Intel, Arm, Broadcom and Micron, fell between 2.3% and 6.2%, which dragged the Philadelphia SE Semiconductor Index down nearly 4% and weighed on the Nasdaq index.
U.S.-listed shares of ASML were down 12% after the Dutch company published results ahead of schedule in an apparent error, reporting weak bookings, lowering forecast, and indicating slower chip demand recovery outside AI sector.
"ASML's fat finger error isn't cause for concern in itself, but the content of the release didn't make comforting reading for investors," said Derren Nathan, head of equity research, Hargreaves Lansdown.
Separately, Bloomberg News reported on Monday that U.S. officials have been considering implementing a cap on export licenses for AI chips to specific countries - mostly in the Persian Gulf region, citing national security concerns.
Washington is increasingly concerned that the Middle East might serve as a channel for China to acquire advanced American chips that are prohibited from being directly shipped to the Asian country.
"With the AI revolution expected to play such a huge part in upping productivity and enabling other technological advances it's not surprising the U.S. wants to do what it can to maintain its dominance," said Danni Hewson, head of financial analysis at AJ Bell.
(Reporting by Akash Sriram and Jaspreet Singh in Bengaluru: Editing by Tasim Zahid)
