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Shares of ASML Holding (ASML) — a maker of machinery used to develop computer chips — rose in premarket trading Wednesday after the company beat fourth-quarter profit estimates. Netflix (NFLX) stock also continues to rise after the company announced strong financial results on Tuesday along with strong subscriber growth.
Yahoo Finance Live anchors Brad Smith and Seana Smith discuss themes seen across the world of technology and semiconductors.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by luke carberry morgan.
video transcript
Brad Smith: Well, the top news today is that futures extended their gains this morning as tech stocks continue to drive this rally we’ve seen so far. ASML and Netflix are leading the way with revenue exceeding expectations. ASML manufactures lithography machines essential to the production of advanced chips. The company now reports a 30% increase in full-year revenue, another sign of optimism for the semiconductor industry.
I’m looking at the pre-market stock price here, and it’s up about 6%. This will contribute to further expansion of the demand and strength of AI chips that have been driving the market to date, Sheena.
Sheena Smith: Well, all the attention is certainly on technology. And it’s not just because of some results that we’re here faster than Bell. And not just what we heard from Netflix last night, but what we got after the bell. here. We bring it to you on Yahoo Finance. But we’ll likely hear from Tesla and IBM. So certainly the focus of this day is on the names of many of these technologies.
And let’s look more specifically at some of the movements we’re seeing in ASML. Now, this is not a stock that we necessarily know about. It’s not a name that everyone knows. Some people may not be familiar with it, but I will explain it this time.
And the reason we’re seeing that kind of movement here is because of the degree of demand for our products and what that shows in terms of a recovery for chipmakers following what we heard last week. It’s a Taiwanese semiconductor, right? Indeed, we are probably seeing a rebound within this sector. So it’s certainly true that this could potentially give a signal to other big players in the chip space.
Brad Smith: If we’re not talking about lithography at the kitchen table, what the heck are we talking about? After all, it’s essentially a projection system, using this process over and over again to It allows you to create patterns. So what they’re basically doing with ASML is they can manufacture these lithography systems and sell them here as whole units.
And in this latest quarter, we actually sold 105 of our new products in Q3. Excuse me, but he sold 113 of them. You can also resell some of your used items. So these systems can essentially take advantage of some of the latest extreme and deep UV printing to create the various layers needed on a chip with nanometer-type technological capabilities.
In other words, ultimately these products need to be manufactured in ultra-clean rooms and ultra-clean factories. And we should talk more about lithography at home.
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