European equities surged early in 2025, but their momentum looks fragile after Washington and Brussels agreed to a 15 % tariff deal. Chart weakness in tech giants ASML and SAP and a flattening Euro Stoxx 50 ETF suggest investors should tread carefully despite the headlines.
ASML delivered strong Q2 2025 results, beating expectations on revenue and profit, with gross margins above 53%. Stock weakness is driven by management's warning of potential 'no growth' in 2026, due to tariff uncertainty and delayed CAPEX spending. Despite political risks and cyclical volatility, ASML's fundamentals remain robust, with clear long-term growth guidance and a strong AI-driven outlook.
ASML (NASDAQ:ASML), the prominent Dutch semiconductor equipment manufacturer, has experienced a stock drop of nearly 5% over the past week, remaining down by 11% in the last month due to trade tensions that have prompted the company to issue a softer financial forecast. In its Q2 2025 earnings report, ASML cautioned that it could no longer assure that its revenue would increase in 2026, overshadowing an otherwise strong quarter.
ASML Holding N.V.'s management is unable to confirm growth in 2026, citing macroeconomic factors. I believe the main reason for this uncertainty has little to do with macro and geopolitical factors. The slow adoption of high NA EUV tools may be the main factor. From what I'm seeing, TSMC doesn't have compelling reasons to upgrade to the new generation of EUV tools, citing the sky-high price tag as the main reason.
Zacks.com users have recently been watching ASML (ASML) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
ASML's Q2 results beat expectations, but management's cautious 2026 outlook and China exposure spooked markets, creating a discount opportunity. Despite headwinds, ASML is aggressively buying back shares, signaling strong management confidence in future growth and boosting EPS potential. Valuation multiples are at decade lows; I see ASML as undervalued with potential for 30% upside as industry fundamentals remain robust.
ASML delivered strong Q2 results last week, beating EPS and revenue estimates due to surging AI-driven demand for its lithography systems. The company's unique and irreplaceable position in the semiconductor value chain as well as robust moat support its premium valuation. ASML maintained strong gross margins in Q2 and saw a solid free cash flow recovery as well.
ASML Holding N.V. reported strong Q2 results, but cannot confirm 2026 growth due to macro and geopolitical uncertainties, leading to a post-earnings stock pullback. Current sales growth and inventory trends signal the end of ASML's expansion cycle, but it's unclear if a contraction phase has begun. Historical cycles suggest a deeper correction—around $640 per share—may mark a better entry point for opportunistic investors.
ASML Holding N.V. investors have suffered while seeing the semiconductor peers surging to new highs. ASML's withdrawal of 2026 guidance sparked a post-earnings selloff. However, it has remained above the key April lows. Moreover, the ongoing AI infra buildout should help alleviate the skepticism about new equipment sales subsequently, even as the High-NA sales momentum stalled.
ASML Holding N.V.'s Q2 showed resilient revenue growth and expanding margins, with strong EPS, despite some concerns about cash flow weakness. Annual guidance for 2025 indicates accelerating sales and margin improvement, supporting a positive long-term business outlook. The stock appears undervalued, with a P/S ratio well below historical averages, offering attractive entry for long-term investors.
ASML Holding stock tumbles 9.5% despite strong Q2 results as weak guidance and 2026 uncertainty spook investors.
ASML posts a 47% jump in Q2 EPS and beats both earnings and revenue estimates, driven by strong Systems and Services growth.