Advanced Micro Devices, Inc. ( AMD ) stock, along with other chip stocks, are trading lower in sympathy with ASML, which fell after issuing soft guidance.

What To Know: ASML anticipates 2024 fiscal year fourth quarter net sales between $9.5 billion and $10.03 billion along with a gross margin between 49% and 50%. Furthermore, the company issued soft guidance for some of its quarterly expenses.

CEO Christophe Fouquet said, “ASML expects R&D costs of around €1.1 billion [$1.2 billion] and SG&A costs of around €300 million [$327 million].”

For the full 2024 fiscal year, ASML expects net sales of approximately $30.5 billion. For the 2025 fiscal year, the technology company anticipates net sales between $32.70 billion and $38.15 billion. In addition to issuing guidance, ASML shared key third-quarter financial results, including net sales of $8.18 billion, a gross margin of 50.8%, and net income of $2.29 billion.

Both ASML and AMD are key players in the tech industry, with ASML supplying essential equipment for chip manufacturing, while AMD develops processors and graphics solutions.

What Else: Reports indicating that the U.S. is considering curbing chip exports to some countries may also be effecting stocks in the chip sector. The U.S. already limits exports of AI chips from U.S. chipmakers to a few countries, including China.

The proposed export controls would target Persian Gulf nations and is aimed at protecting national security.

See Also: Nasdaq, S&P 500 Futures Rise Solidly Ahead Of Q3 Earnings Season, Boeing Drags Dow: This Strategist Sees ‘A Lot Of Firepower’ Supporting Market After Election

AMD Price Action: At the time of publication, AMD shares are trading 5.11% lower at $156.84, according to data from Benzinga Pro.

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