Shares of semiconductor stocks fell sharply on Wednesday after the first major industry results came out from ASML (NASDAQ: ASML). Management is optimistic about the future of artificial intelligence (AI), which has pushed chip stocks higher this year, but still expects revenue to be flat for the year.

Nvidia (NASDAQ: NVDA) shares responded by falling as much as 7.6% in trading on Wednesday, Arm Holding (NASDAQ: ARM) fell 9.6%, and Micron Technology (NASDAQ: MU) was off 6.2%. The stocks were down 6.7%, 9.2%, and 6.1% respectively at 3 p.m. ET.

When stocks go up rapidly, expectations of the underlying companies go up as well. ASML is no exception and while second-quarter results were better than expected, investors were disappointed management didn't raise full-year revenue guidance from previously provided "similar to 2023."

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Source Fool.com