The ASML icon is displayed on a smartphone with the ASML chip visible in the background.
Noor Photos | Noor Photos | Getty Images
Semiconductor equipment maker shares ASML Shares of the Dutch company fell 15.6% on Tuesday after reporting results a day early.
The move pulled down losses among other chip stocks NVIDIAAdvanced Micro Devices and Broadcom both fell at least 4% after the news broke.
ASML said it expected net sales in 2025 to be between 30 billion euros ($32.72 billion) and 35 billion euros, in the lower half of the range it had previously provided.
The company said net bookings for the September quarter were 2.6 billion euros ($2.83 billion), well below LSEG’s consensus estimate of 5.6 billion euros.
The company’s CEO Christophe Fouquet said in the financial report: “While the artificial intelligence field continues to develop strongly and has upside potential, other market segments will take longer to recover. It now appears that the recovery is more gradual than previously expected. “
Ahead of ASML’s earnings, Wall Street analysts have grown more cautious about the chip company, a key supplier to the broader semiconductor industry.
Many of the world’s largest chipmakers, from Nvidia to TSMC, use ASML’s extreme ultraviolet lithography (EUV) machines to produce advanced chips.
ASML Chief Financial Officer Roger Dassen also said on Tuesday that he expected the company’s China business to “show a more normalized percentage of our orders and business.”
“We do see China moving toward historically normal levels as a proportion of our business,” Dason said, according to a transcript of the video, which was also released a day earlier.
“As a result, we expect revenue from the China market to account for about 20% of our total revenue next year. This is also consistent with its proportion of our order backlog.”
The Dutch company said in its second-quarter earnings report that 49% of sales came from China.
This is a breaking news story and will be updated soon.
About The Author
