ASML Holdings (NASDAQ: ASML), the Dutch semiconductor equipment giant, experienced a dramatic stock price crash on Tuesday, falling by 16% in one of its steepest declines in 20 years.
Dutch semiconductor machinery titan ASML Holding NV (NASDAQ:ASML) has lost its crown as Europe's most valuable technology company after shedding up to $50 billion from its share price in just two days. Now at a market capitalisation of €258 billion, ASML is slightly below German software multinational SAP, which is valued closer to €260 billion.
Netherlands-based chip equipment maker ASML said Tuesday that it expects net sales for 2025 to come in at the lower half of a range it had provided previously. Roger Dassen, ASML's chief financial officer, said he expects the company's China business to show a "more normalized percentage in our order book and also in our business.
The darling niche of the technology sector today is found in the semiconductor and chip-making industry, where most of the interest—and capital—has been focused since 2023. Pushed by secular tailwinds from artificial intelligence and other advancements, markets have somewhat priced in all potential future growth in these stocks, creating some risk in the coming quarters.
ASML provides crucial equipment for semiconductor manufacturing, but its recent earnings should not scare off investors.
A look at the day ahead in U.S. and global markets from Mike Dolan
Nvidia closed down 4.7% Tuesday while ASML closed 16% lower.
Investors and analysts are reviewing their assessments of computer chip equipment maker ASML , they said on Wednesday, after the company cut 2025 financial guidance, citing weakness in markets other than AI and delayed orders.
Dutch chip-equipment maker ASML Holdings N.V.'s ASML smaller-than-expected bookings for the third quarter and guidance cut sent shares of companies with exposure to artificial intelligence lower on Tuesday.
Chip stocks may see continued pressure in today's session as AI chip export restrictions and weak non-AI demand weigh on Nvidia, Broadcom, and ASML.
Europe's answer to the Magnificent Seven is leaving much to be desired after two of the Continent's biggest companies, ASML Holding and LVMH Moet Hennessy, disappointed investors.
Kevin Wang, semiconductor analyst at Mizuho Securities, discusses ASML's share plunge and its outlook for 2025.