The new sanctions against China chipmakers fall short of previous iterations
Shares of semiconductor equipment makers are moving higher Friday, following a Bloomberg report that the Biden Administration is considering more measures to restrict the sale of semiconductor equipment and artificial intelligence (AI) memory chips to China. However, the new rules seemingly fall short of the stricter proposals previously given.
In response, U.S.-based Applied Materials, Inc. (NASDAQ:AMAT) and Lam Research Corporation (NASDAQ:LRCX) are both moving higher ahead of the bell. Netherlands-based ASML Holding NV (ASML) is also cheering the news.
At last glance, AMAT is 2.2% higher before the open, looking to start the session just above $175. The equity's most recent rally lost steam at its 80-day moving average, and its now sitting at levels not seen since February. Despite slipping 15.2% so far this quarter, Applied Material stock is 5.7% higher year to date.
LRCX is looking to open 2.7% higher near $73.50 and could use a win; the security has finished lower in five of the last seven sessions. Should pre-market action hold, it could boost the shares into positive territory for the week, but a fifth-straight monthly loss still looms. The equity is marginally above its year-over-year breakeven level and sports an 8.6% year-to-date deficit.