Tech stocks live updates: Tech stocks rise as ASML raises forecast on strong demand for AI chips

Tech stocks rose on Wednesday, after Dutch chip manufacturing equipment maker ASML provided better-than-anticipated earnings and raised its outlook on strong demand for AI chips. The tech-heavy Nasdaq rose roughly .6% on the news.

ASML says that it is also working to increase the overall efficiency that will allow it to produce more extreme ultraviolet (EUV) lithography machines, which are key to manufacturing advanced semiconductors.

ASML stock was largely flat in early trading Wednesday.

The announcement comes after last week’s larger sell-off in AI stocks, as Wall Street cycled out of high-tech companies, grabbing profits along the way.

On Tuesday, IBM preannounced earnings results, warning that the company’s adjusted earnings per share and revenue fell short of investors’ expectations. CEO Arvind Krishna said that the shortfall was tied to customers moving their spending toward servers and memory chips.

Shares of Big Blue ended the trading day down more than 25% on Tuesday, though they recovered slightly Wednesday.

The AI trade’s next test comes early Thursday morning New York time, when Taiwan Semiconductor Manufacturing Company (TSM) reports its quarterly results. On Monday, The company reported that June revenue soared 68% year over year, setting the stage for a blowout report, but any surprise on AI demand to the upside or downside could prove to be a catalyst for shares of its customers — namely Nvidia (NVDA).