BUZZ-Chip stocks falls as investors wary of high interest rates

Reuters04-19

** U.S-listed shares of Arm Holdings , Advanced Micro Devices , Intel and Nvidia fall between 1% and 5%

** Analysts say worries of higher-for-longer interest rates and profit booking after a massive rally impacting chip stocks

** Fed's decisions "raising fears that monetary policy could be kept tighter for longer to the potential detriment of end demand" - Russ Mould, investment director at AJ Bell

** Higher rates and geopolitical tensions likely to put pressure on higher multiple stocks such as ARM - Angelo Zino, senior equity analyst at CFRA Research

** Mixed results early into earnings season; ASML's

Q1 bookings missed expectations and TSMC bullish on AI but lowered chip forecast outside the memory market - Zino

** Profit taking likely to hit semiconductor stocks harder than other areas of the market - Zino

** ARM has risen ~35% so far this year; NVDA and AMD have risen ~69% and ~4%, respectively

(Reporting by Arsheeya Bajwa in Bengaluru)

((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800))

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