MARKET REPORT: Nvidia sees £130bn loss of value as chipmakers crumble

Hundreds of billions of pounds were wiped from the value of global chipmakers yesterday after a stunning warning from one of the world’s biggest players.

Dutch giant ASML, Europe’s largest technology company and leading supplier of equipment used to make chips, forecasts lower-than-expected sales in 2025.

The company noted that while demand for AI technology remained strong, other parts of the semiconductor market are proving weaker for longer than feared.

ASML shares plunged more than 15 per cent in Amsterdam, wiping £34 billion off their value.

The warning shocked the industry and Nvidia, the world’s second most valuable company behind Apple, saw its value slashed by £130bn as its shares fell around 5 per cent.

Cambridge-based Arm, which like Nvidia is listed in New York, took an £8bn hit when its shares fell almost 6 per cent.

Oil stocks also took a hit as the price of crude oil fell. BP shares fell 3.9 per cent, or 15.9 pence, to 392.5 pence and arch-rival Shell fell 3.4 per cent, or 87 pence, to 2,502.5 pence.

That reduced the value of BP by £2.6bn and Shell by £5.4bn (a total of £8bn in a single session).

Commodities trader Glencore was also lower, falling 4 per cent, or 17p, to 403.55p.

The sell-off came as Brent crude fell more than 2 percent to $73 a barrel, meaning it has fallen about 9 percent since peaking above $80 last week as intensified the conflict in the Middle East.

The latest drop was sparked by reports that Israel was not planning to attack Iranian nuclear and oil facilities, easing tensions across the region.

However, the drop in oil prices was good for airlines, hoping it will reduce the cost of jet fuel.

British Airways owner IAG gained 4.1 per cent, or 8.15 pence, to 206.9 pence, Easyjet added 3.2 per cent, or 15.8 pence, to 518 pence and Wizz Air rose 1.5 per cent, or 18p, to 1,256p.

The FTSE 100 lost 0.5 per cent, or 43.38 points, to 8,249.28 and the FTSE 250 fell 0.1 per cent, or 22.75 points, to 20,794.44.

Housebuilders were rising on hopes that the Bank of England will cut interest rates next month and possibly again in December.

Official figures showed average weekly earnings, excluding bonuses, were 4.9 percent higher than a year earlier in the three months to the end of August.

That was the smallest increase in more than two years and fueled hopes that the Bank will follow the August rate cut with another move in November.

Barratt Redrow rose 2.8 per cent, or 12.8 pence, to 472 pence, Persimmon advanced 3.8 per cent, or 61 pence, to 1,662 pence and Taylor Wimpey advanced 2.2 per cent, or 3, 4p, up to 160.15p.

NatWest shares rose 0.6 per cent, or 2p, to 355p after analysts at Jefferies lifted the stock. But they downgraded lender Paragon, which fell 4 per cent, or 30.5p, to 740p.

Money transfer company Wise said it had 8.9 million active customers at the end of its second quarter, up 23 percent from a year earlier.

It also reported a 17 per cent rise in underlying revenue to £337 million. The shares gained 2.1 per cent, or 14.5p, to 693p.