The ASML CEO reportedly said on the call that the forecasted weakness in the semiconductor market is expected to mainly impact sales of its less advanced systems in China. He also explained that lower chip demand is primarily coming from the automobile and consumer electronics industries. "We are still quite optimistic about AI," Fouquet said on the call. AI chip leader NVIDIA Corp NVDA fell more than 4% on Tuesday while other chipmakers like Advanced Micro Devices Inc AMD, Intel Corp INTC and Micron Technology Inc MU all faced significant selling pressure. Nvidia was up more than 2% on Wednesday, Micron was up about 4%, AMD was trading narrowly higher and Intel was down about 1% at the time of writing. Bloomberg reported this week that the Biden administration was weighing capping sales of advanced AI chips from Nvidia and other U.S. chipmakers. That report also weighed on chip stocks on Tuesday.