Yeah I’m talking about the US stock market. You’re analysing production and material needs and that makes sense. The stock market prices predict future returns. In normal conditions it would probably take a while for Chinese EUV to bring down ASML’s stock. In the current conditions around the AI pump it might act as a trigger that pops the imagined huge returns because it’ll be a clear signal that China is very likely to eat NVIDIA’s lunch and therefore dependent firms. It might also act as a broader propaganda-piercing signal to investors that China catching up is real and near. That would question the broader semiconductor sector’s future returns too.
Yeah I’m talking about the US stock market. You’re analysing production and material needs and that makes sense. The stock market prices predict future returns. In normal conditions it would probably take a while for Chinese EUV to bring down ASML’s stock. In the current conditions around the AI pump it might act as a trigger that pops the imagined huge returns because it’ll be a clear signal that China is very likely to eat NVIDIA’s lunch and therefore dependent firms. It might also act as a broader propaganda-piercing signal to investors that China catching up is real and near. That would question the broader semiconductor sector’s future returns too.