ASML (ASML -6.96%) stock saw a big valuation pullback in Wednesday's trading. The company's share price fell 7% in the day's trading, and had been down as much as 8.6% earlier in the session.
ASML Holding N.V. reported strong Q1 earnings, beating profit estimates, yet shares dropped over 5%, making the stock attractively priced for long-term investors. The company benefits from robust semiconductor and AI chip demand, with strong pricing power and improving gross margins, particularly in the EUV lithography space. Despite missing revenue estimates slightly, ASML reaffirmed its full-year guidance, indicating confidence in its market position and future performance.
ASML Holding N.V. (NASDAQ:ASML ) Q1 2025 Earnings Conference Call April 16, 2025 9:00 AM ET Company Participants Jim Kavanagh - VP, IR Christophe Fouquet - President & CEO Roger Dassen - EVP & CFO Conference Call Participants Francois-Xavier Bouvignies - UBS Krish Sankar - TD Cowen Joe Quatrochi - Wells Fargo Didier Scemama - Bank of America Alexander Duval - Goldman Sachs Chris Caso - Wolfe Research Mehdi Hosseini - Susquehanna Tammy Qiu - Berenberg Timm Schulze-Melander - Redburn Atlantic C.J.
ASML Holding N.V. missed Wall Street expectations with €3.9 billion in revenue, a 16.4% drop, mainly due to reduced China sales amid geopolitical tensions. Despite this, ASML maintains a positive outlook for 2025, expecting €30B to €35B, signaling even with tariff panic the full year should be in the clear. The current stock drop presents a buying opportunity, as the demand for EUV technology remains strong and will increase into next year, in my opinion.
The semiconductor sector is swimming in red ink today, and ASML Holding NV (NASDAQ:ASML) is one of the primary culprits.
The A.I. trade not only took a hit hit from Nvidia (NVDA), but also ASML Holding (ASML). The Netherlands-based company disappointed in its earnings and blamed President Trump for tariff uncertainty affecting guidance.
ASML Holding NV (NASDAQ:ASML, ETR:ASME) shares fell around 4% in Amsterdam and in New York premarket trading after the Dutch semiconductor equipment giant reported first quarter sales in line with expectations but a lower outlook than analysts were forecasting. CEO Christophe Fouquet said conversations with customers so far support expectations that 2025 and 2026 will be growth years, though recent tariff announcements "have increased uncertainty in the macro environment and the situation will remain dynamic for a while".
ASML's stock is falling 5% after reporting Q1 earnings. Q1 earnings were solid, but US-induced import tariffs are clouding the outlook as key customers pause CAPEX spending. ASML's exposure to US market is expected to grow, but if 10% or 25% tariff, chipmakers will continue buying best-in-class equipment.
ASML Holding (ASML) shares fell in premarket trading Wednesday after the Dutch manufacturer of semiconductor-producing machinery reported worse-than-expected first-quarter net bookings and a soft current-quarter sales outlook.
While President Donald Trump's tariffs are front and center in many investors' minds, a handful of stocks have sold off despite being relatively unaffected. This is a guilty-by-association reaction and a great opportunity for investors to scoop up shares.
ASML's Q1 2025 results hit guidance with €7.7 billion in net sales (up 45% YoY) and a 54% gross margin, beating expectations. Bookings fell to €3.94 billion, below the €4.8 billion consensus, due to tariff uncertainty impacting foundries' CAPEX decisions. Despite near-term tariff concerns, ASML's FY 2025 guidance remains strong at €30-35 billion in sales and 51-53% gross margin, driven by AI demand.
Chinese demand for ASML's chip-making tools has remained stronger than expected in 2025, Chief Financial Officer Roger Dassen told journalists on Wednesday.